Crude oil futures settle at $67.38

Crude oil futures are settling the day at $67.38. That is down -$4.40 or -6.13%.

The low reached $66.94. The high price reached $68.84.

The declines were in response to the limited Israeli retaliatory strike on Iran, which avoided oil facilities.

However, there is other fundamental influences which can support or weaken prices going forward.

• Counter to the retaliation is concerns about the duration of the conflict and potential new strikes may be a support for oil but later.
• A decline in crude oil stored on tankers is bullish for prices,
• Weak demand in China and increased Libyan output are bearish factors.
• OPEC+ agreed to pause production hikes, but Saudi Arabia may abandon its $100/bbl target to regain market share.

ON the US political front, a Trump presidency may lead to more action against Iran, and encouragement of Isreal’s response to Iran. On the other side, is Trump is likely to encourage more drilling. Harris says she would be open to drilling but the perception is that it will not happen.

Technically, the support area was reached at the $66.76 to $67.69 swing area (see red numbered circles). This area should give decline a cause for pause/bounce with stops on a break below.

This article was written by Greg Michalowski at www.forexlive.com.