WTI crude settles down $2.81 to $81.34
The selling has continued after settlement with crude hitting $81.02.
This is both a rejection of the $85 level tested in October and an outside bearish day.
There was a squeeze higher in oil yesterday after Biden failed to deliver on an anticipated SPR release (or at least there was some fear of it). Some action from the US is still possible but there's no indication of what it might be.
Seasonally, it's not a great time for oil until January and the reinvigorated talk of higher interest rates are negative for demand. At the same time, oil is one of the best inflation hedges out there so if you think the Fed is behind the curve, or headed in that direction, then it could benefit.
