Oil falls to 2-month lows

Oil futures fell to fresh 2-month lows on Monday weighed by signs of  global crude production increasing and diminishing demand from Asia. West Texas Intermediate crude oil futures settled down 1.45% at $44.50 a barrel.

WTI technical view

“WTI seems poised to extend its decline, given that in the daily chart, the price is extending below its 100 DMA for the first time since early March, whilst the RSI indicator heads south around 36,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the 20 SMA has accelerated its decline, now offering a strong dynamic resistance around 45.75, whilst the RSI indicator hovers around 34 and the Momentum indicator heads higher within negative territory, recovering from oversold readings. Nevertheless and with the price pressuring the low at the end of the day, further slides are to be expected, first towards 43.95, May 11th low, and further towards the 42.50 strong static support.”

Support levels: 43.95 43.20 42.50. Resistance levels: 45.10 45.80 46.30.