Crude oil settles sharply lower for the second consecutive day
Crude oil prices extended their decline today. The price of crude oil futures are settling down -$4.14 at $64.37 . Coupled with yesterday's decline, two-day decline comes to over $10.
Crude oil prices extended their decline today. The price of crude oil futures are settling down -$4.14 at $64.37. Coupled with yesterday's decline, two-day decline comes to over $10.50.
The retreat in oil markets followed a cease-fire in the Iran – Israeli/Iran - US tensions.
Over the weekend, a U.S. strike on Iran’s uranium-enrichment facilities prompted a symbolic response from Tehran yesterday, on a U.S. base in Qatar. Iran’s response to the US bombing was interpreted as a deliberate move to de-escalate tensions.
Later, Israel and Iran agreed to a U.S.-brokered ceasefire, pausing a 12-day conflict, despite isolated violations by both parties.
As the risk premium tied to Middle East tensions unwinds, traders are turning their attention back to market fundamentals—namely, oversupply.
The third tranche of 411,000 barrels per day (bpd) from OPEC+ supply restorations, scheduled for July 1, will further increase global output.
Technically, the price fell below its 200 day moving average at $68.56 yesterday, and below its 100-day moving average at $65.83 today. The low price is testing the low of a swing area at $64.41. Moving below and support comes at $60 and then at the low for the year at $55.15.
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