Brent crude steadies after dramatic slide

Yesterday afternoon oil prices crumbled in what was the biggest one day slide since October 4 and before the crisis in the Middle East unfolded. Earlier in the morning the price of January Brent crude had managed to climb back above $81. However, as the US markets reopened, the price crumbled and fell to a low of $76.72, as the wider European markets drew to a close. It did rebound slightly later, but still closed $3.76 lower on the NYMEX exchange, at $77.42. So far today it has mostly traded sideways, as market operators lick their wounds inflicted upon them yesterday. The one thing this latest fall might do is to take the heat out of global inflation pressure, but oil prices will need to hold at lower levels for a prolonged period to achieve that. I did warn several days ago; that a break below $82.20 was important and as you can see now how that has played out by delivering further capitulation. The Brent range seen so far this morning has been covered by $77.30 to $77.72. It is just now trading at $77.52