WTI Crude Oil (current price: $47.35)
Oil declined sharply for the second day in a row and it fell by 2% this time, although it was down by more than 4% during the day. The commodity is trading near the “line in the sand” support at $47 that we have been monitoring in recent weeks. The fundamental picture got somewhat better for oil in the past few months, but further correction seems likely, especially if risk assets continue lower in the coming weeks. Strong support levels to watch include the $46.50 and the $44 lines.
Our assessment: Oil is back near the prior correction low just below $47, and the crucial commodity might be headed even lower following the incredible rise that started in February.
