Oil prices continued to push lower with price action down for four sessions consecutively.
The decline accelerated following Saudi Arabia cutting oil prices. This has pushed the commodity down to the 38.83 level of support.
If price rebounds off this level, then we could see a sideways range forming with oil staying within 41.00 and 38.83 levels in the near term.
But a close below 38.83 will potentially signal further declines.
Below this main support, the next support area is seen at the 37.00 handle. Establishing support at one of these levels will be crucial in order for any upside to gain momentum.