Oil hit on global growth worries
The 2.75% drop in the Shanghai Composite and the 3.1% fall in oil today are the most-telling numbers in financial markets today.
Worries about global growth a brewing. Much of that is coronavirus-driven but that's not the only factor. The US election will ramp up uncertainty and growth has serially disappointed for years.
Technically, the outside day on January 8 remains the dominant feature on the chart and it proved prescient. Now crude is testing the November low of $54.76. The low so far today is $54.77 and we've since bounced 15-cents.
The event to watch is the US inventory report. It's out 30 minutes later than the usual time today because of Monday's holiday. The consensus is for a +800K reading but watch products, which have jumped since the start of the year.
Here were the API numbers from late yesterday:
- Crude +1570K
- Gasoline +4500K
- Distillates +3500K
- Cushing -429K
