WTI Crude Oil (current price: $43.75)
Oil continued its steep correction yesterday as Wednesday’s bearish inventory data continued to put pressure on the WTI contract, and the negative Manufacturing PMI also had a negative effect on the crucial commodity. The gloomy fundamental picture pushed the price back below the key $44 resistance, and another re-test of the 200-day MA and the coinciding $41.50 support now seems possible, after the two strongly bearish days.
Our assessment: Oil is now down by 10% since Friday, and today’s Employment Report will likely cause further volatility, as traders weigh the possibility of a rate hike by the FED.
