Trump knocks $1.20 off oil
WTI crude has fallen to $55.89 from $57.50 in the aftermath of Trump's tweet saying that prices are too high.
The drop in oil today erases last week's break above the January high as the market goes back to retest the old resistance line.
For me this is a classic, healthy retracement. Ultimately, I don't think Trump can jawbone down the supply-demand dynamics in oil. While Trump says this, other US officials continue to talk about getting Iran oil exports to lower levels. The Saudis are also less likely to trust the White House after flooding the market in Q3 last year only for Trump to back down on Iran restrictions, leading to the collapse in crude.
Technically, keep an eye on $55.55 as support but I think the damage is done from Trump and that positive risk sentiment today will be more of a tailwind for oil once it finds a footing.
