Crude Oil Price Analysis for March 24, 2017

WTI crude oil started the session higher but was unable to hold on to gains as fresh selling came in above 48 per barrel.  Reports this week showed global inventories are growing despite the OPEC-led effort to curb supply. Rising U.S. shale production and a lack of compliance among some of the non-OPEC oil producing signatories to the output cut accord have been driving the build-up in crude stockpiles.

Crude Prices are Oversold

Crude prices were able to hold just above support near and upward sloping trend line at 47.80. Resistance is seen near the 10-day moving average at 48.72.  Additional resistance on WTI crude oil prices are seen on the chart near 50. The RSI (relative strength index) moved lower with price action reflecting accelerating negative momentum. The current print on the RSI is 26.4, which is below the oversold trigger level of 30 and could foreshadow a correction.