Crude oil futures are settling at $58.49. The high price today reached $61.06. The low price was at $58.30.
Signs of a global supply glut outweighed geopolitical and demand supports. The main catalyst was OPEC’s revision of its Q3 market estimate. They now project 400,000 bpd deficit to a 500,000 bpd surplus.Whoops. Both U.S. output exceeded expectations and OPEC production increased.
Adding to the bearish tone, Saudi Arabia cut its key crude price to Asia to an 11-month low, signaling weakening demand in that region, while a stronger U.S. dollar further pressured dollar-denominated energy prices.
chnically, looking at the hourly chart above, the price of oil reached toward the low of a swing area near $61.45 yesterday. Today, the price fell below a cluster of MAs near $60.30, and then low of a lower swing area down to $59.58. The sellers are in more control below the swing area with the MAs (which are all converging) as a more conservative risk defining level now.
