Algos Extend Oil’s Selloff, Dragging Futures to Three-Week Low
- WTI crude futures plunge more than 3% to below $83 a barrel
- Higher-for-longer US interest rates may drag on energy demand
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Oil fell more than 3% to a three-week low as trend-following algorithms accelerated the day’s selloff.
US crude inventories swelling to a nine-month high, combined with weaker Chinese industrial data, pushed West Texas Intermediate futures to settle at $82.69 — below the key $84 support level, according to Fawad Razaqzada, a market analyst at City Index and Forex.com. “This gave rise to further technical selling,” he said.