The price of crude oil futures are settling at $64.35. That is down $0.81 or -1.24%.
The move lower has taken the price back below its 100 day moving average at $64.95. It is also move below a swing area between $64.41 and $65.27. The next target would be at the May 9 low, which reached $63.61.
The break below the 100 day moving average now cents that level as a close risk level. Staying below is more bearish. Move back above and that could be disappointment on the failed break.
Today’s EIA weekly oil inventory report showed a larger-than-expected crude stock draw of -3.029M. That should've supported the market. Also, fundamentally the newly announced 25% tariff on India might have been expected to lend support to oil prices. However, the market reaction told a different story. After a brief rally, prices resumed their downward momentum.
The inability of buyers to take control signals that the markets expect increased supply and weaker demand to dominate in the sessions ahead—ultimately “winning the day” in shaping price direction.
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