Oil prices are trading below the 41.00 handle at the time of writing. The commodity is down over 1.5% intraday. Even a weaker USD has failed to lift oil prices higher.
The declines come amid concerns of weaker demand. If oil prices close below the 41.00 level, then we expect further declines.
Alternately, a close above the 41.00 level could keep price action ranging. The next lower support is at the 37.5 – 38.00 level in the event of a downside breakout.
The minor rising trend line might provide some dynamic support for prices in the near term.