WTI Crude oil prices are down over 3% intraday. The declines come just after prices touched a three-month high near 41.50.
Following this gain, oil prices are trading back below the 40 handle which had proven to be a bit of a struggle to break earlier on.
Currently, WTI crude oil is likely to slip further to the lower support area around the 37.67 handle.
We expect support to hold in here as it might attract new buyers into the market.
But there is a real risk of prices collapsing further pushing oil back to the lower support area at 34.42.
A test of this level could potentially cement the upside considering that the 34.42 handle wasn’t tested firmly.