Oil just dropped to a 5-month low below
"Oil just dropped to a 5-month low below"
in the news Oil just dropped to a 5-month low below? What this all about..... See below.
Sentiment Trader saw today that Oil prices struck a new 2017 low on Thursday as mixed U.S. stockpile data compounded bearishness that has permeated the energy complex in recent weeks.
U.S. West Texas Intermediate crude fell below $49 and international benchmark Brent breached $49, both sinking to the lowest level since Nov. 30, the day the Organization of the Petroleum Exporting Countries agreed to cut output.
Analysts said WTI could eventually decline to $42 now that it broke this key level..so far the chart of crude is hurting, and does not look pretty. This is quite interesting.
The move lower came after the U.S. Energy Information Administration reported a much smaller-than-expected drop in crude oil inventories and another week of soft gasoline demand.
John Kilduff, founding partner at energy hedge fund Again Capital, said there was no one headline moving oil on Thursday. Instead, he chalked it up to more technical trading.
"That $46 level ... is huge," so we will watch that.
On Tuesday, oil breached the previous week's low of $48.20, sparking a round of high-volume, late-afternoon selling.
Just before noon, U.S. crude broke through a major support zone flagged by Seaport Global Securities earlier in the day. The next critical level is $42.70.
Roberto Friedlander, head of energy trading at Seaport Global Securities, pointed to "terrible" demand for refined products, uncertainty around future oil consumption.
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