WTI crude oil futures continued their journey South once again today, and as we come to the end of another week, the commodity continues to suffer as global tensions ease, plunging towards the $100 per barrel level which I outlined in a previous post. The move lower today has been dramatic, with the WTI August futures contract shedding over two dollars per barrel to trade at $100.65 per barrel at the time of writing. Today’s price action has been significant, with the wide spread down candle slicing through the potential support platform at $101.50 per barrel with apparent ease.
The next potential platform of support now awaits below in the $99.70 per barrel region, and as shown on the volume at price histogram on the left of the chart. Should this be breached, and assuming there is no further escalation of the current tensions, then oil is likely to continue lower still, and down towards the $98 per barrel level next week.
By Anna Coulling