Crude oil has been making progress on the downside, but it recently managed to overcome resistance at 73.93. However, this level and the high reached at 73.58 might continue to pose as resistance levels. On the downside, the psychological support at 70 was not sustained, and potential support levels can be found at the breakpoints and prior lows of 69.41, 66.82, and 66.12.
In terms of fundamentals, market participants are closely awaiting the release of the weekly US Energy Information Agency (EIA) data on Wednesday. This data is of particular interest following last week’s unexpected surge in oil inventory, with a substantial addition of 5.04 million barrels compared to the anticipated drawdown of 920k barrels. Additionally, severe wildfires in the Canadian provinces of Alberta, British Columbia, and Saskatchewan are expected to impact the nation’s oil production output, potentially reducing it by nearly 250k barrels per day. This development is seen as a bullish sign for crude oil.