Crude continues to slip, extends losses below 65.00/barrel

• Crude extending declines in risk-off market sentiment.
• Following equities in their tumble as traders pull out of markets.

Crude oil continued its recent slide yesterday, WTI crude last seen going for 60.50/barrel in Asia trading, with Brent crude near 64.30/barrel.

Oil has followed equities and other commodities' cues lately, dumping down the charts as risk aversion continues to grip traders across all markets, with positive economic growth in the US sparking rounds of inflation fears across the board and sending bond yields into multi-year highs, despite a notable lack of willingness from central banks outside of the US to begin discussing rate increases. Coupled with the increase in US crude output that has seen the US pump and process more oil than ever before, surpassing their own previous record of 10 billion barrels/day as well as the total output capacity of Saudi Arabia, significant downside pressure continues to pile onto the energy source.

WTI/Brent Technicals

Crude looks primed for traders to fade the rallies, assuming the commodity can extend bearish moves beyond support at 59.10 for WTI and 64.00 for Brent. WTI Crude will need to contend with resistance at 63.25 and 66.30 before it can get the previous bull run back on track, while Brent has heavy resistance building into 68.50 and 70.80.

Today's pivot points (WTI):
R2: 60.57
R1: 60.49
PP: 60.36
S1: 60.28
S2:  60.15