Crude Oil continues its Plunge into the Abyss

The price of crude oil, continues to inch lower testing its lowest level seen this year as sellers came out in force Friday afternoon. This move did lose some momentum this morning as the price of the US WTI benchmark moved slightly higher before the end of the Asian session. This snapped a five day losing streak.

Price action is in a delicate space as the day moves forward. On the calendar today is the Baker Hughes rig count data. This should show the number of active oil sites at a two-year high. The CFTC statistics should show net-long exposure to WTI falling to the lowest level in six months.

What is more interesting is that oil traders ignored supportive comments from Saudi Energy Minister Khalid Al-Falih this morning. This is an indicator that jawboning from OPEC is becoming less and less potent. The selloff in the black gold could resume in earnest.

Crude Oil Technical Analysis

Let’s talk about today’s daily technical analysis using the above MT 4 chart. Price action held up near the technical support lining up at $45.32 per ounce. The first upside barrier lines up at 47.20 with a daily close above this level challenging the next upside barrier lining up at $49.10 per ounce.

The alternative analysis notes a close below $45.32 per ounce challenges the next downside barrier lining up at $43.00 per ounce.