The price of WTI crude oil futures are settling at $93.89. That’s down -$4.73 or 4.8%. The low price reached $92.42. The high price extended to $98.65.
The low reached the lowest level since July 15. The July low on the 14th came in at $90.56.
Technically, the price closed below its 200 day moving average for the 1st time since December 20, 2021 (see green line in the chart below).
“Concerns about demand growth” are being cited for the declines from a fundamental perspective.
The declines come despite another shortfall in production from OPEC+
As Adam reported earlier:
- July OPEC output rose 310k bpd, according to the latest Reuters survey. That still left it 1.3 mbpd short of quotas. OPEC had pledged at 412k bpd increase in July.
- Saudi Arabia did managed to increase production by 150k bpd but was at 10.75mbpd compared to its 10.833mbpd quota.
- The UAE and Kuwait are the only OPEC producers meeting their full quotas.
- Nigeria is badly under-producing its quota at 1.13mbpd compared to 2.33mbpd allowed. They’ve suffered from repeated pipeline and production problems
Traders will be watching the 200 day moving average going forward is a barometer for bullish or bearish. The prior dips have all failed fairly quickly (intraday). Time will tell if the momentum can continue. Key technical day tomorrow.