WTI crude oil is down $1.00 to $56.58, which is a fresh low since May.

Technically, it’s not a pretty picture as there isn’t much support left and there are many barrel counters seeing an intense glut in the year ahead. There were brief spike lows in April to $55.12 and May to $55.30. Those will need to hold for the bulls to mount a defense.

If those give way, then we’re back to January 2021 lows and the post-covid demand destruction. The pre-covid low came in December 2018 at $42.36 but we’ve had abundant inflation since then and that would put the inflation-adjusted level at $54.65.