Crude Oil Takes A Hit | RJO FuturesPosted 04/19/2017 2:21PM CT |
With Geopolitical tensions waning, crude oil is taking it on the chin like a boxer today, with June futures down $2.00 a barrel to $50.85 as I write. It was reported yesterday that a US naval armada was not steaming towards the Korean peninsula to confront any further North Korean missile tests. There had been rumors that the US was contemplating shooting any further N Korean missiles out of the sky if the PRK persisted with their threat of weekly tests.
EIA inventory reports showed crude oil inventories falling 1.03 million barrels. Expectations were for a fall of 1.3 to 1.7 million. The market had a decidedly bearish reaction to the lower 1.03 million draw. Furthermore, distillates fell 1.96 million barrels, and gasoline rose 1.54 million barrels. Gasoline inventories were expected to fall 1.7 to 2.1 million barrels. With gasoline registering a rise, the floodgates were open to sell across the board.
Technically, June crude broke definitively below the 50 day moving average at $52.19. The $50 mark will probably be psychological support, however strong technical support on the daily chart over the last year is $45 to $48 a barrel.
Jun ’17 Crude Light Daily Chart