Oil extends decline to 5%

Libya restarts production

Worries about a virus pickup and the return of Libyan oil are weighing heavily on crude. There is also the death of the Kuwaiti head of state to consider and the fumbling on the EU recovery fund.

Crude was trading at $40.25 when New York traders arrived, it’s down to $38.62 now, a fall of 5%.

I don’t like what I’m seeing on this chart. This week’s high has fallen short of last week’s and both are below the August top. A series of lower highs is a tough trend to break and the supply-demand balance is problematic, to say the least.

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