West Texas Intermediate (WTI) broke through today's earlier lows at $90.29 per barrel to reach a new low for the year at $90.04 before rebounding to $90.68.
On the way down from the open at $91.76 and brief high at $91.97, oil cracked both the 100 day moving average at $90.85 and the 200 day moving average at $90.38. Crude was last at these levels on December 31st when it touched $90.00 but closed at $91.82 and on December 30th when it dropped to $90.05. Before the December 26th surge higher (open $88.62, close $90.98) oil had traded beneath $90.00 since October 22nd, rising above $89.50 only four times until the December 26th break.
Oil has been moving lower since the middle of the month and continued today despite soild U.S. manufacturing and consumer confidence data. The deepening recession in Europe and the United Kingdom and weaker than expected manufacturing results from China have reversed consumption expectations for the world's basic industrial commodity.
Support at $90.00,% 89.25 and $88.50.
Resistance at $90.85, the 100 day moving average
Current Price $90.67
Chief Market Strategist