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USOIL chart - Trading View
West Texas Intermediate (WTI) crude oil was trading at 59.31, down 0.37% at around 11:25 GMT.
WTI oil prices undermined following last week’s announcement that OPEC will be gradually increasing output in coming months.
Further, a hefty build in US gasoline inventories add additional downside pressure. An unexpected build in the American gasoline inventories overshadowed the drawdown in the crude stockpiles recorded last week.
US oil fails to garner upside momentum, upside remains capped at 21-EMA resistance. Price action remains sandwiched between 21 and 55 EMAs. Breakout will provide a clear directional bias.
Momentum studies are bearish, oil prices risk drop towards the cloud base support at $54.95. Watchout for break below 55-EMA support at 58.76 for further weakness.