The price of Crude Oil fell by 5% on Tuesday afternoon after the Saudi Arabian declaration of willingness to fill any supply gap. The oil minister Khalid Al-Falih said that OPEC and his supporters are in the phase of "production on the highest possible scale" in order to meet the demand and fill the shortcomings created after the entry into force of Iranian sanctions. In addition, last week US crude oil inventories increased by almost 10 million barrels. This is the largest increase since February 2017, but accurate data will only appear today from the EIA website.
There are several reasons for slipping the price of oil, among them is the current sell-off taking place in all financial markets. The current price movement is probably an escape from the space of raw materials and shares towards safe havens.
Let's now take a look at the Crude Oil technical picture at the H4 time frame. The technical support zone between the levels of 67.93 - 68.35 has been violated clearly and the price has made a new low at the level of 65.71. The market conditions remain oversold and the momentum is still clearly negative and weak, so another spike down should be expected. The next target for bears is seen at the level of 64.42.
