Crude oil continues to slide, yields spikes driving WTI, Brent lower

Crude oil is faltering, with WTI nearing 61.00/barrel and Brent back below 65.00/barrel, last seen trading near 64.60.

The slip in crude is being driven by the Dollar recovery on the back of rising bond yields, and the continued surge in US crude production, which recently broke records as American oil companies flood supply chains and produce more oil from US soil than at any other point in history. The next Energy Information Administration data publication will come on Thursday, where median forecasts expect another million-barrel-plus increase in crude stockpiles. OPEC is still struggling to drawdown supply, but overall demand for crude is continuing to increase, offsetting much of the damage caused by US oversupply, but still not strong enough to mitigate all of the damages.

Crude Technicals

Crude prices collapsed in early February and following a brief correction that brought WTI back up to 62.62 per barrel, looks set to resume the bearish trend. A continuation of the current selloff will see support at 60.89 and 59.75 for WTI, while Brent see support stacked at 64.07 and 62.00. Resistance is lined up at 62.50 for WTI and 65.10 for Brent.