Crude oil extends plunge below $40/barrel

August 2, 2016

Crude oil prices continued to fall precipitously on Monday, with the West Texas Intermediate (WTI) benchmark for US crude dropping below $40 per barrel for the first time in more than three months. Monday’s fall extends the sharp downtrend that has been in place since the $51-area highs of June.

WTI extended this downtrend on Monday as persistent concerns over the crude oil oversupply situation were compounded by a survey reflecting record-high output by OPEC nations last month. Also weighing on oil prices was data that revealed the US oil rig count had climbed by 44 rigs in July, the highest monthly increase in over two years.

Having tentatively dipped below the key $40 price level on Monday, WTI has reached a critical technical juncture. A strong drop below this level could open the path to significantly further losses as major oil producers continue to raise production and compete for market share.

Also around the noted $40 level is the key 200-day moving average, which crude oil has not traded below since April. This moving average may serve as a major “line in the sand” for WTI, especially as it currently coincides with the important $40 level.

With further downside follow-through on the tentative breakdown below $40 and the 200-day moving average, the next major downside targets are at the key $38 and $34 support levels.

Publication source
FOREX.com information  FOREX.com reviews

January 20, 2017
The dollar has settled moderately lower
Asian stock markets were mixed overnight, after U.S. and European shares closed in the red Thursday. Japan and mainland China bourses managed to move higher (Chinese GDP beat expectations at 6.8%)...
January 20, 2017
A huge disappointment in the UK data
UK retail sales fell most since 2012. We see he fastest pace of decline in almost five years in December. It is due to sales of... pretty much everything from household goods to clothing and food...
January 20, 2017
Trump takes office today. Markets await inauguration speech
Investors await Trump's inauguration and speech due later today as he takes office as the 45th President of the United States. The U.S. dollar was seen giving up some of the gains yesterday with some volatility coming off the EURUSD on the back of the ECB meeting...

FOREX.com Rating
Vantage FX Rating
Orbex Rating
FxPro Rating
HotForex Rating
EXNESS Rating

OptionFair Rating
24option Rating
Migesco Rating
Banc De Binary Rating
Porter Finance Rating
Dragon Options Rating