WTI - sell-off gathers pace

Crude oil fell sharply this morning. Several significant support levels have now been broken, and front-month WTI back to levels last seen at the end of July. Crude has managed to rally off its lows today, but it still feels as if the path of least resistance is down, with the next support for the front-month WTI contract coming in around $75 per barrel. Having said that, oil is startingf to look oversold at current levels, so the possibility of a bounce can’t be ruled out. Demand issues continue to be the driver of price, with concerns about economic weakness across China, the Eurozone and possibly the US as well, all adding to downside pressure. Recent US inventory data have come in above expectations which hasn’t helped oil bulls.