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Oil prices fall as global supply hit record high, IEA report shows

Crude oil prices fell hitting a session low at $69.48 a barrel, after monthly report from International Energy Agency showed surge in OPEC production.

The IEA said daily crude-oil output in the Organization of the Petroleum Exporting Countries (OPEC) climbed in August by 420,000 barrels a day, to average 32.63 million a day.

That output could fully offset any negative impact an expected decline in Iranian supply due to pending U.S. economic sanctions.

Oil price was down nearly 2.5% for the day so far, on track for the biggest one-day fall since 08 August.

Reversal pattern is forming on daily chart and leaving a double-top at $71.38/25, which could spark further weakness.

South-turning 14-d momentum is breaking into negative territory and maintain bearish pressure.

Bears look for extension and close below 30SMA ($68.00) to open way towards $66.85 (07 Sep trough), break of which is needed to confirm double-top and stretch towards rising 200SMA ($65.73).

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Broken daily Tenkan-sen ($69.11) marks initial resistance and is expected to protect the upside and maintain fresh bearish bias.

Meanwhile, market participants have also been watching Hurricane Florence, which was downgraded over the Atlantic Ocean late Wednesday to a Category 2 storm. Even so, it is expected to remain an “extremely dangerous major hurricane” when it nears the coast late Thursday and Friday, according to the National Weather Service.

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Source:: Businessamlive