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December oil futures tumble lower in oil trading session

WTI December oil futures tumbled lower again today, following the release of the weekly oil stats as crude output climbed to it’s highest level in more than fifteen years, whilst at the same time fuel consumption decreased. The Cushing crude oil inventories fell by 0.5 million barrels against a forecast increase of 1.6 million barrels, but the primary driver for the fall today was the drop in fuel demand of 0.3% or 18.4 million barrels a day, whilst output rose 11,000 barrels a day to 6.5 million barrels last week.

From a technical perspective the wide spread down bar broke below the psychological $90 per barrel level, and closing the oil trading session at $88.52 per barrel. This bearish tone has also been confirmed on the three day chart, where the trend here is also bearish, and is now adding further weight to the move lower, giving a strong signal that oil prices are likely to continue moving lower in both the short and medium term.

The close of today has also broken below the platform of support in the $89 per barrel area, and now that this has been breached, we can now expect to see oil prices test the next platform which now awaits in the $86 per barrel area, and if this is broken then a move to test the $80 per barrel level will become increasingly likely in the medium term.

Finally, the Hawkeye heatmap remains firmly bearish, and with the conservative Roadkill signal of last week now firmly established this is now developing into a solid longer term position to hold for the next few days.

If you would like to see Hawkeye in action, please just click on the link here and join me in one of my many Free live trading rooms – I look forward to seeing you there.

By Anna Coulling