The crude oil prices dropped significantly on huge market disappointment after the crude oil inventories data was published last week. Moreover, the Organization of Petroleum Exporting Countries (OPEC) refused to cut oil output below 30 million barrels a day, so the current market analysis points out a possible price of $20 a barrel in 2016. This is huge news to the commodity markets and it confirms the bearish trend is still intact.

From the technical point of view, crude oil is looking for a temporary support around the level of 38.99, but it might get easily violated. In that case, the next support is seen at the level of 37.74.