Summary:
- Oil falls lower after Trump tweet
- US president called prices “artificially very high”
- Market could be overdue a pullback after hitting 3 1/2 year high
The price of Oil has taken another turn lower today after a tweet from Donald Trump saw the market flooded with selling pressure. The market fell swiftly below the $73 handle and now trades back near the level seen on Wednesday ahead of the DOE report. The US president took to Twitter to target OPEC with the following message:
Trump took aim at OPEC in his latest message on the social media site. Source: Twitter
What was looking like yet another good week for Oil bulls has turned a little sour with the market pulling back fairly sharply in the last 24 hours. Wednesday’s DOE report which showed a larger than expected draw sent the market higher with a new peak seen just above 74.00. However, the market failed to hold near these highs and today has declined further following the US president’s intervention.
Oil has erased nearly all of the post-DOE gains and now trades back near the level seen 48 hours ago. Source: xStation
Thursday saw the market print an inverted hammer on D1 and with today’s declines price is back not far from where it started the week. Whilst price remains above 70.80 the breakout seen last week remains in-lay but a drop below there could lead to a deeper correction.
Oil printed an inverted hammer yesterday and has continued to decline today. 70.80 remains a key level to keep an eye on going forward. Source xStation