Crude Oil Falls as Sellers Take Control
The price of crude oil has fallen to new lows after the US announced it would release 40 million barrels from its Strategic Petroleum Reserves. This news is considered bearish for the market.
Technically, crude oil futures have had a choppy trading period in September, with prices climbing from $85.75 to $107.46 on September 15 before falling sharply. The price has been unable to sustain breaks above key moving averages and resistance levels.
The 200-hour moving average, currently near $94.74, has been a point of contention for buyers who attempted to push prices higher yesterday but ultimately failed to maintain the break. Sellers have taken control, pushing the price lower today.
Key support levels include the September swing lows at $88.72 and the 50% retracement at $86.93, with a sustained move below these levels potentially leading to further declines.