Oil plunged several percent on Thursday. They say, the bullish rally was just too aggressive. Let's trade the dip then!
Crude ticks up, gasoline drops as refineries get back after Harvey
On Tuesday, crude prices ascended because demand picked up and American refineries started resuming operations.
Meanwhile, gasoline futures kept dropping because initial concerns of a serious supply crunch relieved.
October delivery West Texas Intermediate crude futures hit $47.55, soaring 0.5%. On Monday, American crude futures didn’t settle due to the Labor Day holiday in the USA.
Meanwhile, November delivery Brent futures sagged 0.2% in London, being worth $52.25 a barrel.
October delivery gasoline futures lost 1% trading at $1.674 a gallon, which is close to levels observed before storm system Harvey affected the US Gulf coast.
Last Thursday, prices leapt to a two-year maximum of $2.139 on concerns of supply shortages.
Pipelines, crude refineries and shipping channels across Texas and Louisiana started a gradual return of operations after a week ago Harvey impacted the heart of the American energy industry.
US retail sales will be out on Thursday, April 15, at 15:30 MT. It is a significant release for traders as it will impact the US dollar.
As the earnings season kicks in, JPMorgan is the first to impress us with the better-than-expected data!
The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.