Oil began to plunge in Asia and the declines are now extending. WTI is down $6.75 to $102.80, which is the lowest since May 12.
No one has been able to find any good reason for the selling. Of course, there's the usual worries about recession, China lockdowns and whatnot but that's not new. In terms of news, we'll hear from Biden at 2 pm ET and he's expected to start a push for a gasoline tax holiday.
I thought it would have a good chance but Politico today, citing 'multiple Democratic sources' said that the effort to to suspend the federal gas tax for three months stands almost no chance of passing. In any event, it would be bullish for demand, thus positive for prices.
Justin earlier highlighted a handful of technical levels including the 100-dma at $105.39. That's broken now and the 200-dma is way down at $90.98, which is close to the April low of $92.93.
Seasonally, June is bullish but oil flattens out in July/Aug before a negative seasonal pattern from Sept through Nov.
