Oil futures followed another textbook buy the rumor and sell the fact this week with a run up to $60.92 on news of the impending hurricane and then an immediate drop down to critical support at $55.00. With bullish news flowing through the headlines and no bids coming into the market crude oil might have to travel back down to the low 50’s to spark new demand. Looking at the supply situation inventories sit at 455 million barrels with the 5-year average at 432 million barrels leaving the market flush with inventory. Keep an eye on new geopolitical risks developing in Iran and another drop in the rig count with rigs falling 10 of the past 13 weeks.
Crude Oil Aug ’19 Daily Chart