Crude Oil Is Getting Smoked

Oil prices are tumbling again.

In late afternoon US trade on Tuesday, the price of West Texas Intermediate crude oil was down more than 5% to below $US46.50 a barrel. Tuesday’s declines come after last week saw oil prices rise for the first time in almost two months. 

Brent crude oil, the international benchmark, was also lower, down about 1%. 

The decline in crude comes ahead of the week’s US stock market open, as markets in the US were closed on Monday in observation of Martin Luther King, Jr. Day. 

On Tuesday, news in the oil space included some more bad news from services providers, as Baker Hughes said it expects the number of oil rigs in US to continue falling in the first quarter. The company also said it expects to cut 7,000 jobs in the first quarter.

Last week, WTI posted its first weekly gain in almost two months, but on Tuesday, these gains are proving to be short-lived. So far, at least.

And here’s the yearly chart of WTI.

 

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