Oil is under pressure after the release of a shocking inventory report which indicated that crude inventories increased by 15.2 million barrels.
As a result, oil is trying to settle below the nearest support level at $45.20. A move below this level will push oil towards the next support at $44.75. If oil declines below $44.75, it will head towards the support at $44.40. In this case, oil will have a good chance to develop additional downside momentum.
On the upside, oil needs to get back above $45.80. The next resistance level, which has been tested during the current trading sessions, is located at $46.25. If oil settles above this level, it will gain upside momentum and head towards the recent highs at $46.65.
As a result, oil is trying to settle below the nearest support level at $45.20. A move below this level will push oil towards the next support at $44.75. If oil declines below $44.75, it will head towards the support at $44.40. In this case, oil will have a good chance to develop additional downside momentum.
On the upside, oil needs to get back above $45.80. The next resistance level, which has been tested during the current trading sessions, is located at $46.25. If oil settles above this level, it will gain upside momentum and head towards the recent highs at $46.65.
