Oil News: Crude Oil Futures Sink Below 200-Day Average on Oil Demand Fears
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Key Points:
- The IEA cut global oil demand by more than 1 million barrels per day, reinforcing expectations of weaker crude consumption.
- Crude oil futures turned sharply lower after losing 200-day moving average support, strengthening the bearish technical outlook.
- Rising tanker traffic through the Strait of Hormuz signals recovering supply and removes much of the geopolitical risk premium.
The crude oil market got a one-day reprieve and could not hold it. Thursday’s bounce off the 200-day moving average set up what could have been a reversal. Instead the selling came right back Friday and took both benchmarks below the levels that were supposed to hold.