West Texas Intermediate (WTI) oil prices tumbled more than -1% in thin trading on Thursday, as the U.S. Thanksgiving holiday kicks off.
Investors are now viewing how major producers respond to the U.S.-led emergency oil release as the U.S. is set to auction off 50 million barrels of oil from its reserves.
That’s part of coordinated action with other countries, including India and Japan, which Washington hopes will help cool soaring prices for crude.
U.S. President Joe Biden’s administration announced plans last Tuesday to release millions of barrels of oil from strategic reserves in coordination with other large consuming nations, including China, India, and Japan, to try to cool prices.
Given the holiday in the U.S. and with (trading) volumes light, bears emerged in greater numbers sending prices lower.
The RSI has reinstated a negative signal based on the technical study, while the MACD holds negative territory.
With the resistance holding at $80.30-40, the downside level at $74.70 remains vulnerable.
A (New York) close beneath this level would expose an extension to bear decline to $72.00. Reassess from there.