Crude Oil Crashes Below the 200 Daily SMA

Crude Oil was bullish in June, but have turned bearish in July, falling below $77 after consolidating above $80 for several weeks. The price fell below the 200 daily SMA yesterday, which had been acting as resistance before, so it might turn into resistance once again and a good place to sell Oil.

Friday witnessed a significant drop in crude oil prices, declining over 3% as global economic worries overshadowed fresh concerns about lower Q3 supplies. Although the political landscape remains uncertain, Trump’s policies are expected to be expansionary and inflationary, potentially leading to a slower pace of FED rate reductions, which could negatively impact oil prices.

WTI Crude Oil Chart Daily – The 200 SMA Has Been Finally Broken

In June, oil prices surged by more than $10, peaking at $84. However, they reversed course in early July, falling below $80 last week. This week has commenced on a somber note, with prices anticipated to dip into the mid-$70s. Friday’s market activity suggests a potential downward trend in oil prices as the global economy continues to struggle.

API Crude Oil Inventories Report

Headline Crude Oil Inventories

• Decreased by 1.6 million barrels
• Expectations: Decrease of 1.6 million barrels

Distillates

• Decreased by 1.5 million barrels
• Expectations: Increase of 0.2 million barrels

Gasoline

• Decreased by 2.8 million barrels
• Expectations: Decrease of 0.4 million barrels

Cushing

• Decreased by 1.6 million barrels

Strategic Petroleum Reserve (SPR)

• Increased by 0.7 million barrels

US WTI Crude Oil Live Chart