WTI dropped 6% on the day as Saudi oil supply meets demand
|- WTI drops to the lowest levels of the day following the Saudi energy Minister's bullish statement.
- WTI has dropped to a low of $58.54, travelling down from a high of $62.55 and down some 6% on the day.
The price of a barrel of oil has just hit the lowest levels since the week's attack on Saudi oil facilities following bullish remarks from the Saudi Energy Minister. WTI has dropped to a low of $58.54, travelling down from a high of $62.55 and down some 5% on the day at its lowest levels.
Speculators took profits at the highs yesterday considering there were no immediate escalations on the geopolitical front until the U.S administration claimed to have intelligence that Iran was indeed responsible for the attacks, but an outright military retaliation seems to have been averted and instead, the US will not seek war on Iran but will impose sanctions.
Saudi Energy Minister has said that supply is fully back online
The price of oil found further relief on the statement from the Saudi Energy Minister has said that supply is fully back online while production will be fully back online by the end of September.
"We acknowledge that OPEC nations, and particularly Saudi Arabia, have a direct incentive to downplay the impact of the disruption, as each individual nation would benefit from disincentivizing others' production," analysts at TD Securities had to say on the matter at the start of the week.
WTI levels
The market bounced hard on the fundamental weekend news which has thrown technicals off, but with the fundamentals now calming, technicals can come back into play and the downside is in play. The price surged to the vicinity of a 127.20% Fibonacci extension of the July swing highs to Aug swing lows but has since moved back, swiftly, to the 78.6% Fibo of the same range and prior Sep' highs in the 58.50/70s. A break below there will open the 61.8% Fibo and Aug resistance just below the 57 handle. On a re-escalation of fundamentals, the April highs at 66.58 will b back in vouge.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.