Oil News: Will Dip Buyers Defend Crude Oil at the 200-Day Moving Average?
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Key Points:
- New U.S. authorization for Iranian oil exports adds supply and strengthens the bearish oil outlook.
- Traders are focused on whether the 200-day moving average can trigger dip buying or a deeper selloff.
- Record tanker traffic of 19 million barrels weakened fears of supply disruptions in the Strait of Hormuz.
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Crude dropped for the second straight session Tuesday on the kind of news flow that kills a fear trade one headline at a time. The bulls went into this week defending the Strait of Hormuz closure. They are coming out of it watching record tanker traffic, a Treasury license that puts Iranian barrels on the open market, and a joint statement from Oman and Iran that the market barely acknowledged. The strait is open. The barrels are moving. The risk premium is running out of reasons to exist.