Oil technical analysis
Oil bounced from the 50% retracement on Friday but talk of Saudi Arabia offering customers more supply and signs of increased Iraq shipments sparked a rout today with WTI down $2.89 to $68.12.
The drop cut through Thursday's low and oil also briefly fell below the 61.8% retracement before bouncing slightly. The $68.05 level will be one to watch on the close.
Note that crude seasonals are now in a time of weakness. The numbers to watch in the week ahead will be the US inventory data, and how the market reacts to them. Inventories tightened dramatically last week and oil dropped anyway.
