US wiggle on Iran oil and Libya production rise helping
The price of crude oil is moving sharply lower in trading today. The price has cracked $70 and traded as low as $68.48. We currently trade at around $68.50, down -$2.50 on the day.
Catalysts are a report include a comment from US Treasury Secretary Mnuchin that some crude importers may receive waivers to continue buying supplies from Iran, despite US sanctions on the country. In addition production at Libya's El-Feel was reported to be higher. Russia has said that they and other oil producers may raise output by 1 million barrels per day if shortages hit the market (that according to Russian energy minister Novak). Did Trump talk to Putin about increasing oil production today?
At the end of last week, there was a report that the US might release oil from the strategic petroleum reserve before the US elections. All should ease supply concerns (or at least the market is looking that way).
Technically, the price has moved below the 50% of the move up from the June 18 low at $69.43. On Thursday last week, that level was tested and found support buyers.
The 61.8% of the move up comes in at $68.05 and is the next target.
Looking at the daily chart, the price may be tracking a test of the 100 day MA at $67.02 ultimately. Also below is the 50% of the 2018 range. That comes in at $66.67.
