WTI crude oil prices edged lower as traders continued to worry about rising U.S. production while a stronger dollar added to downside momentum.
Followed by the Energy Information Administration weekly crude totals Wednesday showing crude supplies rose less than expected failed to lift sentiment amid persistent rise in U.S. output, Crude prices looked set for a second-straight weekly decline as negative sentiment on oil prices continued.
Inventories of U.S. crude rose by 2.408 million barrels for the week ended March 2, below expectations for 2.723 million barrels increased but that was offset by a rise in U.S. output to a record high per day of nearly 10.4 million barrels last week.
Crude oil 4-hour chart has formed "Head & Shoulders” pattern. The last session ended up near the neckline support of the pattern holding near $60(3906). The market is expected to continue in bearish momentum, once the same breaks below the neckline support. The downside rally could test all the way through $59-58(3840-3775) levels in the upcoming sessions. Alternatively, if the neckline support holds strong then the market might retest the same and turn bullish. Resistance holds at $63(4100).
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