Crude futures plummet by 4.07% as global growth concerns intensify

US crude futures are settling at $69.38. That’s down-$2.94 or -4.07%. The decline was the largest since a -4.66% decline on November 16. Looking at the daily chart, the next major target area comes near $67 where swing lows from June in July are found.

The tumble comes despite an oil drawdown of -4.632 million versus expectations of -1.354 million. However, there was a net build of 6.9 million barrels in product stocks including a buildup of 5.421 million in gasoline stocks and a 1.267 million barrel increase in distilate stocks.

Concerned about global growth are stronger than fears about the decline in oil stocks. ADP employment was also weaker at 103K. Recall the JOLTs job openings was also weaker yesterday. The US non-farm payroll report will be released on Friday. In German factory orders also fell sharply (-3.7% versus 0.2% expected).

This article was written by Greg Michalowski at Source