Brent oil price dropped after US data showed an unexpected build in crude and gasoline stockpiles in first week of June. This weighed on the oil and the international benchmark fell to $76.40 a barrel. A dip in demand from China with its May oil imports easing away from last month’s high, added to the pressure on oil. World’s biggest oil companies have bid aggressively in Brazil’s latest offshore bid ahead of the OPEC meeting between major producers in Vienna on June 22-23. An update is expected on possible output increase later this year.
Technically the oil seems to be preparing for a minor top formation for the short term and would seek first support at 38.2% Fibonacci retracement at 73.79, and another support at 71.75 level, a 50% retracement. The MACD line after crossing down the signal line two weeks back is seen hovering around the line. Any downfall will seek support at the 75.01 mark.
Please refer our earlier research on Oil on May 24 – https://www.myforexeye.com/crude-oilnymex-technical-view/