Crude Oil Tumbles Despite Huge Drawdown. Slower Growth, Potential Tariffs Cited

The price settled at $70.38, down -$3.73 or about -5% on the day.

Down -$3.73 on the day

The price of crude oil has moved sharply lower in trading today.

The high reached $74.26. The low reached $70.02…

The fall is despite a huge drawdown in inventories reported by the EIA today (-12633k vs -3788K estimate)…

The $69.43 is the 50% of the move up from the June low. That is also near swing highs from April. That level will be eyed for bias clues in the near term.          

The catalyst? Expectation for potential global growth and concerns that China might look to throw some tariffs on oil imports. Libya also indicated it would lift restrictions on four Libyan oil ports and said production and exports would return to normal levels. According to reports, Libyan production has fallen from about 1.3 million barrels per day in February to 527,000 barrels per day.  – Neal Bhai Reports (NBR)

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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