WTI crude down 2.3% on the day
Crude prices have been alternating between sizeable gains and losses lately. After a sizeable rally Tuesday/Wednesday, crude is plunging today, down $1.08 to $47.32. More stops were just hit as Wednesday's low gave way and now Tuesday's low is in view.
In the bigger picture, the range around $48 is continuing and it will take a break below $46.50 or above $48.85 to get things moving.
You would expect oil to get a lift from Harvey, which is a tropical storm in the Gulf that's going to hit at the heart of the refining industry. The NHC is now saying it will make landfall as a Category 3 hurricane.
Part of the story here is that refineries that are shutdown won't be buying crude but that's just a timing mismatch.
Update: WTI now down to $47.19, just below Tuesday's low.
The way I understand it, this hurricane is really threading the needle. It's avoiding most production while hitting right in the heart of refinery. So the oil is still out there but there are no refineries to buy it.
