A report that Russia was considering a oil-price floor gave crude a brief reprieve today but it didn’t last long as signs of excess crude mount. WTI crude extended its decline today to nearly $2 and a low of $74.93.
Oil companies have been one of the best trades of the year and the commodity itself was for the first half of the year as well but the anticipated disappearance of Russian crude hasn’t materialized and prices are reversing.
Support now rests at last week’s intraday low of $73.47.
If that breaks, crude could fall into the mid-60s in a development that would likely prompt an OPEC response.