The move to the downside took the price below the recent swing lows from October 18, October 19 and October 24 between $82.06 and $82.62. The 61.8% retracement of the move up from the September 26 low was also broken at $82.87.
The price traded at the lowest level since October 3rd.
Looking at the hourly chart, the contract high in November stalled near the high from October near $93.73. Since the November 7 high, the price has declined -13.07% (from the high to the low today).
The decline is being fueled by concerns that the China demand for oil will be less as a result of Covid cases rising and the potential for more lockdowns.
Crude oil falls sharply lower