Crude oil falls below $40

WTI crude oil futures dropped further on Monday and bottomed at $39.80, the lowest level since April 18. Currently the barrel is hovering around $40.00 down almost 4% for the day. From the level it had a month ago, crude oil has fallen 20%.

The decline in crude oil prices started back in June, after the recovery from multi-year lows reached levels on top of $50. It failed to hold above $50 and started to move to the downside. The retreat accelerated in July after price broke below $44.50.

Crude oil decline even despite the sharp decline of the US dollar in the market. The US dollar index (DXY) dropped during the last five days from 97.40 to 95.50.

Technical indicators

To the downside, support levels could be located at $39.80, $37.60 and $37.20. On the opposite direction, resistance might be seen at $40.50, $41.85 (daily high) and $42.30 (July 26 low).