The price of crude oil has moved sharply lower in trading today.
The price settled at $70.38, down -$3.73 or about -5% on the day.
The high reached $74.26. The low reached $70.02.
The fall is despite a huge drawdown in inventories reported by the EIA today (-12633k vs -3788K estimate).
The catalyst? Expectation for potential global growth and concerns that China might look to throw some tariffs on oil imports. Libya also indicated it would lift restrictions on four Libyan oil ports and said production and exports would return to normal levels. According to reports, Libyan production has fallen from about 1.3 million barrels per day in February to 527,000 barrels per day.
The $69.43 is the 50% of the move up from the June low. That is also near swing highs from April. That level will be eyed for bias clues in the near term.