Brent crude futures tumbled more than 3 percent to below $108 a barrel yesterday. We have broken through the 61.8% Fib retracement from 2012 March highs and the 50.0% line is acting as a nice support currently. Past 3 days candlestick pattern also seem to suggest that a “3 Black Crows” pattern has been formed.
CNBC has collated a few reason for greater bearish outlook:
- Â Â Â In addition to huge build in oil supplies, there’s been a dramatic decline in distillate demandâ€”down 11 percent year-over-year.
- Â Â Â Brent crude broke below its 200-day, 50-day moving averages and Fibonacci retracement level. These are key technical indicatorsâ€”and reinforce bearish sentiment in this market.
- Â Â Â U.S. oil prices may be headed to $90 a barrel, after hitting $100 just last Friday.
- Â Â Â One short-term bear’s outlook: John Kilduff of Again Capital said WTI oil could be headed toward $88 a barrel