Bearish inventory data pressures the price
The weekly DOE inventory data showed a larger than expected build in inventories (6771K vs -2000K expected).
That sent the price of crude oil lower and the trend continues with new session lows being printed. The low just reached $50.60.
Technincally, the move today extended below the 61.8% retracement of the move up from the December low at $51.62. The contract also move below end of January swing low and February low at the $51.30 area. It will take a move above each now to swing a little of the bias back to the bulls. Until then the bears remain in control.
We have seen a little bounce off the lows as I type. The contract is trading $50.95. But still down $2.52 or -4.68%.;
UPDATE: A headline is out saying “OPEC determined to bring down inventories and restore investment” . Be aware for some support on the chatter.