The price of WTI crude oil futures are settling at $89.35. That’s down $1.78 or -1.95%.

The low for the day reached $80.38. The high for the day traded up to $91.33.

Looking at the hourly chart below, the price has traded above and below its 100 hour moving average, but over the last few hours has been able to use that moving average as a ceiling. Bearish.

The price action today was driven by the expectations force lower demand – especially given economic headwinds. Yes OPEC+ cut production by 2 million barrels per day last week. That was “really” like 1M BPD as numbers were off of the quota levels which are not being reached anyway.

In addition, as the price goes higher due to lower supply, that has the dampening effect to demand which counteracts the supply constraints.

That seems to be part of the dynamics of the price action today. If consumers have less money in the pockets due to higher inflation including the price of oil, and wages are not keeping up with price increases, consumers look to cut back on things like travel or maybe look to limit driving around.