Still well off the recent “Trump high” of $84.
Crude oil prices are up about $1.32 today after reaching the lowest level since October 2017 yesterday at $52.77. The current price is at $54.77. The low today reached $53.39. The DOE will release their inventory data for the current week and are expecting a build of 3450K barrels. The private data released at the end of yesterday showed a modest draw of -1545K
Yesterday, the higher US dollar and perhaps some comments from Pres. Trump absolving Saudi Arabia from the killing of Khashoggi and cheerleading oil lower. Of course with US oil production higher, lower prices is more of a two way street in the US now. Consumers love lower oil prices at the pumps, but the US producers might not like the lower levels so much.
As Justin pointed out today Pres. Trump was giving “thanks” to the Saudi’s for their help in lowering the price (be sure to add that to the pre-dinner Thanksgiving prayer tomorrow as well ; )) He also commented that the current price is down from the recent high of $84. Well….maybe the high was more like $77, but I guess it is factual as it is in a tweet. (“Thank you for this abundant food for this meal of thanks, and for the killing of Khoshoggi too as we now have abundant oil for our cars.”. UGH).
Technically, the price stalled ahead of the 50% retracement of the move up from the $26.05 low back in February 2016. That level comes in at $51.50. The broken 38.2% at $57.51 will be eyed on the upside by the bulls. The underside of the broken trend line from last week comes in around $59. Moves back above those levels will be eyed by dip buyers. For bears, staying below those levels keeps the sellers more in control.