WTI crude oil futures settle at $58.43

Plus $2.33 or 4.1%

The price of WTI crude oil futures are settling at $58.43. That is a gain of $2.33 or 4.1%. The move higher today was helped by a bigger than expected drawdown of inventories of -4856K versus -1500K estimate.  News that Saudi Arabia is is threatening to keep production higher to punish producers who don’t keep to their quotas had little impact.
Plus $2.33 or 4.1%
Looking at the 60 minute chart above, the contract spiked above its 100 hour and 200 hour moving averages (blue and green lines) and extended up to the recent highs over the last 9 or so trading days between $58.67 and $58.74. The high price today reached $58.66. The low for the day was down at $56.28.
A move above this ceiling would be more bullish for the contract. Staying below, and we could see a rotation back down toward the 200 hour moving average of $57.46.

The bottom falls out of oil again

Fresh lows for WTI

It’s turned into a brutal day for oil. WTI is now down nearly 5% as another wave of selling hits into the settlement.
It’s legged lower in another quick move to $56.30 from $57.15. It had been propped up by some laughably bad geopolitical rumors but it’s rolled over again into the floor.
Fresh lows for WTI
The settlement is $56.25, down just shy of $3 per barrel.
As traders we often fret about the markets humbling us, but the same market just humbled OPEC, who ostensibly has more control over it than anyone.