Oil Falls 2%, Testing $94 Support Levels

WTI oil prices drop 2.4% to $94.03 a barrel as they test support levels just around the $94.00 level amid further signs of stagflation in which economic growth stalls but inflation continues to climb. Peter Cardillo at Spartan Capital says in a research note that if the support levels are breached to the downside, WTI crude “will likely slip to the $90 dollar area.” Yesterday’s weekly EIA report is adding to the bearish sentiment as it showed across-the-board builds in US inventories of crude and fuels, and it also showed unseasonably weak demand for driving fuels.