Oil prices resumed the bearish outlook with declines of more than 7% on Tuesday.
This comes after the US markets re-opened after being closed on Monday due to the Labor Day bank holiday.
Oil failed to find any support near the 39.00 handle. This led to stronger declines in the commodity.
The next main level of support is seen near the 34.00 region.
But we could expect some profit-taking that could offer a rebound above this level.
At the time of writing, the Stochastics oscillator is well extended into the oversold level.