Oil Sinks Most Since Start of Year as Technicals Spark Selling
- West Texas Intermediate futures settle under $78 a barrel
- More selling comes after price fails to breach technical level
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Oil fell to its lowest in almost three weeks, with technical indicators driving the market’s direction amid a lack of clarity on crude demand.
While China’s reopening spurred a rally in crude in recent weeks, the market has struggled to hold those levels as prices test their 50-day and 100-day moving averages. That’s prompting commodity trading advisors to sell, dealers said. At the same time, oil traders bullish on Chinese demand are still waiting for the rebound in consumption to ripple from industrial metals to crude.