Oil prices dropped on Tuesday amid a rise in U.S. crude inventories and high supplies from OPEC.
The rising output from Nigeria and Libya caused supplies to remain high in spite of the club’s pledge to cut production.
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Technical Outlook
Crude oil prices reached fresh highs at $46.90 yesterday but ware unable to hold on to at resistance area and retested the lower slope line at $46.
Crude oil 4H chart has formed “Rising Wedge Pattern”. Prices are currently consolidated around the support line. If crude oil prices break below support at $46 then a further drop is expected. Alternatively, if prices do not break below, then prices are expected to reach $47.50-$49.