The price of WTI crude futures are settling at $74.30. That's down $2.77 or -3.59%. The low for the day has reached $74.26, just below the settlement level. The high reached $77.93.
Technically, the gap from the the OPEC+ production cut decision from March 31 between $75.70 and $79 was filled today. The initial low for the day reached earlier today extended to $75.64 - just below the low gap level - before bouncing up to $77.22. The last 3 hours have seen a run to the downside with a price falling -$2.96 or -3.83%.
Looking at the daily chart, the price has also moved back below a broken trend line, and now looks toward the 50% midpoint of the move up from the March 20 low at $64.36 and the April 12 high up at $83.53. That midpoint level comes in at $73.94 and is the next key target on the downside.
NOTE, at the high price reached on April 12, traders tested its 200 day moving average (green line in the chart above). The inability to move above that moving average was a bearish technical clue (turned buyers to sellers), that has gathered downside steam as concerns about banking and global growth intensifies.
The price decline today comes despite a sharp drawdown in the crude oil inventory of -5.054M barrels. That was much higher than the -1.486M drawdown expected, but not as great as the approximate 6 million drawdown from the private inventory data released last night.
US stocks have moved back to the downside contributing to the softer tone:
- Dow Jones is down -236.0 or -0.71%
- S&P is down -18.23 points or -0.44%
- NASDAQ index stays positive at +54.42 points or 0.46%