Crude oil-resistance holds
Crude oil spent all of Wednesday morning rallying steadily, in a move which saw front-month WTI launch another attempt to break above resistance at $80 per barrel. Once again, it was rejected and has gone on to lose more ground this morning. The final leg of yesterday’s upside push came after the latest weekly update from the Energy Information Administration (EIA) showed an unexpectedly-large drop in crude inventories for the week ended 1st March. But that news wasn’t enough to provide permanent support. Today’s sell-off comes despite an escalation in the seriousness of the attacks carried out on Red Sea shipping by Iranian-backed Houthis in Yemen. Their latest assault has resulted in the deaths of three workers on a merchant ship, the first loss of life since the attacks began towards the end of last year. The MACD has flattened out suggesting a loss of upside momentum, but that can change quickly.
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