Crude oil futures is settling at $69.15 after trying to rebound for the first time in four trading days. It was not meant to be. The price is closing lower for the fourth consecutive day.
The high for the day reached $70.78. The low for the day reached $68.79.
What is not logical is that the inventory data continued to show drawdowns. Today the crude oil inventories had a drawdown of -6.873 million barrels. Also OPEC took back October production cuts that were announced just last week.
Technically, the price high last week stalled just ahead of its 200-day moving average. This week the price fell below an upward sloping trendline near $72.26 (see chart above). On the downside, a swing area comes between $66.86 and $67.74, and now represents the next target area on further selling momentum.
Overall the price is trading at the lowest level going back to December 2023. The price at the end of December closed the year at $71.29. The high price reached $87.59 back on April 5. Today’s low was the low for the year.
