Oil prices are down over 8% intraday on Thursday. The commodity briefly made an attempt to push higher but it only resulted in a lower high forming.
This eventually saw oil prices breaking past the initial support at 37.67.
The close below this support is now putting pressure on oil prices.
We expect the declines to send oil prices toward the 34.42 level where support will be most likely tested.
A rebound off this support area will, however, keep prices range-bound within the 37.67 and 34.42 levels in the near term.