WTI crude oil extends daily loss to 7%
Hopes for G20 help fall flat
WTI crude oil is down 7%, or $1.68 to $22.82 today.
Coming into the day, there was some hope that something would come out of the G20 on oil. Reports yesterday said American officials were pushing for some kind of coordinated output cut but there has been nothing at all along those lines coming out of the talks.
Meanwhile, signs of oversupply continue to mount. IEA chief Fatih Birol said demand may fall as much as 20 million barrels per day.
In spike of the 7% decline, the daily move still looks small on the chart. However this is a three-day low and there isn't any support now until close to $20.
Equally worrisome is the inability of oil to respond to the positive impulses in stock markets.