Focus remains on refineries shutting down
The ongoing devastation from tropical storm Harvey is truly crushing indeed. Adam had a post yesterday about how the oil market is turning its focus on the shutdown in refineries and that has led to a drop in WTI the last two days.
The commodity is barely changed today and it is currently holding above the 50.0 retracement level of $46.24. Yesterday's move to the downside also saw a retracement and it closed above that level.
While the market sentiment remains focused on the drop in demand, there are support levels nearby that could help stem the fall from being a sharp one. The next level to look out for would be near the 24 July low of $45.40, and the 61.8 retracement level of $45.25.
The next risk event to watch out for will be tonight's EIA crude oil inventories data. Eamonn had a post early today pointing out that the data would be slightly skewed by the impact of tropical storm Harvey, but the private inventory survey so far shows a drawdown in crude.
