Crude Plummets After Strong Start
Despite a weak close Friday, Crude started the session off strong, moving to a high of 106.78. However, Crude was unable to hold onto the momentum and plummeted to a low of 101.59, dropping more than $4 in 30 minutes at one point.
The sell-off in Crude is likely a combination of worry over US demand slowing down, Iraq supply coming back online following the pipeline attack last week, USD strength, and expectations for a build in EIA Crude Inventories Wednesday.
Crude rebounded off the 101.59 low after the freefall only to drip back towards it. Upon reaching the 101.59 low, Crude plummeted yet again, making new lows beneath 101.
Crude may be set to test the 100.00 level after losing over 4% so far today.