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US Oil : Extending Losses Ahead of Crude Reserve Data & Fed Meeting Minutes

US Oil is extending its losses today ahead of the release of crude inventories data for the week ending July 4. The data helps in understanding the demand in the world’s top oil consuming nation. According to the economists the crude oil reserves are expected to fall by 1.7 million. Another news which pulled the Oil prices down is that Libya’s oil production is going to boost a Libya’s Prime Minister Abdullah Al-Thani announced that the two export terminals are resuming shipments. Earlier the oil was rising because of the tensions in Iraq which now have been subsided. U.S. and China are the two major economies and gauging the demand of Oil in these countries would be the major factor for Oil prices.

(US Oil : Daily Chart)

On the daily chart, Oil declined below the 50 day SMA and currently testing support from 100 day SMA. There is a key support level at 102.26 which might push the pair upward.However if it continued to decline the next support level the pair will find is at 101.18. The upward movement of moving averages is showing that oil prices will find support and rise again.