Down $3.19. Low price reaches $59.39
The price of crude oil is extending to new session lows after reaching the highest level since the end of April earlier in the day (at $65.65). The price just reached $59.39. Currently the price is trading at $59.52 down $3.19 or -5.07%.
The moved to the downside took a double hit today. First, the Iranian response was less fearful then first thought. The strike seemed to be in the vicinity of the US troops. There were no casualties and no indications of further action. Second, Department of Energy inventory data showed a surprise build of inventories (+1164K vs -3250K estimate. The private data drawdown was even higher than the estimate at -5945K).
Technically, the price has now moved below the 30.2% retracement at the $60.05 level and the natural support at $60. The next target comes in at the 50% retracement at $58.32. The 200 day moving average is a little lower at $57.87.
