After witnessing a continous rally in the past week, Crude Oil prices are turning bearish due to persistent worries over Eurozone debt crisis and not so positive data from US economy.
Oil prices drops by 18 cents, to $88.32 a barrel in Asian trade on Wednesday. Persistent worries over the eurozone's debt crisis hit the sentiment.
Light sweet crude for September delivery, declined by 18 cents to $88.32 a barrel and Brent North Sea crude for delivery in September fell 42 cents to $103 in New York's main contract on Wednesday.
"Stochastics and the RSI have turned bearish signalling that sideways to lower prices are possible nearterm. Closes below the 20day moving average crossing would confirm that a shortterm top has been posted. If it renews the rally off June's low, the 50% retracement level of this year's decline crossing is the next upside target", says HY markets report.
According to report of SMC, in MCX August delivery crude oil will show an upward trend.
Oil for September delivery slid as much as 65 cents to $87.85 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.33 on Tuesday.
The contract climbed 0.4 percent to $88.50, the highest close since July 20. Prices are 11 percent lower this year.
Brent crude for September settlement was at $103.38 a barrel, down 4 cents, on the London-based ICE Futures Europe exchange on Tuesday.
The European benchmark's premium to West Texas Intermediate was at $15.05, from $14.92 on Tuesday.