Crude Oil Bearish Breakout – Decline Continues On Inventories/GDP Data
- The price of (April contract) light, sweet crude oil futures is trading around USD 91.66 per barrel on Thursday, after hitting a high of USD 93.16 earlier today.
- The 95.00 area previous support level was broken on the 20th Feb and the level has not seen a retest in subsequent trading sessions.
- The Nymex crude contract, is now heading for the first monthly basis drop since October 2012.
- GDP (gross domestic product) data released today showed that the U.S. economy had expanded less than anticipated over the final three months of 2012. This event risk scenario had the price of oil declining as market participants price in the potential for decreased oil demand ahead.
- A report yesterday from the U.S. Energy Information Administration revealed that stockpiles of crude oil had risen last week, this has likewise weighed on the price of oil.
Crude Oil Analysis, Brad Styles, Forex-FX-4X.com