Tanker seizure overshadowed
WTI crude is down $1.31 to $54.33.
Weekend headlines highlighted that Iran had intercepted an oil tanker but on second look it looks like more of a minor move. The ship carried just 4400 barrels of oil and makes the official story about oil smuggling more credible.
In any case, everything is overshadowed by global growth worries today as China hits back on US tariffs. The rise in USD/CNY along with cancelled agricultural purchases makes it clear that China is finished with appeasement.
The oil daily chart shows the drop Thursday and a roughly 50% retracement Friday but that's fading now and a break of the downside is increasingly likely.
