Oil prices fall by more than $1 in a quick move
It’s mainly a risk related move here as risk sentiment begins to turn sour on the day. There’s no specific headline that I can see to have caused the move but there’s notable dip in US equity futures (see below) that coincides with the move lower here. Oil prices are one of those brought lower on the sudden move here, with European equities also now falling to session lows on the day.
For oil, this comes on the back of yesterday’s larger than expected inventory build as well as Trump’s call for lower oil prices. From a technical perspective, price now looks to be heading back towards the year’s low and the resistance-turned-support level of $52.86.
If that gives way, price is then looking at a move back towards the $50.00 handle.
This is the quick move down in E-minis earlier. Although US equities aren’t trading today, it’s also best to keep an eye on things here.