Oil annihilated for another day, trades below $33.00

By FXStreet FXStreet (Bali) – Oil prices are being completely smashed, with the price falling by over 3% since the decision by the PBOC to devalue the Yuan again at today’s fix, which saw USD/CNY mid-point at 6.5646 vs yesterday’s fix of 6.5314 and close at 6.555.

Oil bulls (if any) hate volatility

The risk aversion environment is not helping Oil, particularly sensitive to increases in volatility, an occurrence that tends to be caused by risk aversion, which leads to loss of confidence by investors globally, and thus a reduction in the perception of Oil demand, which combined with the huge glut, makes the downtrend still an appealing option despite such depressed prices.

Oil key levels

From a technical perspective, it is hard to find levels of reference, so market players are likely to be using projections to set downside targets. If one is to measure the swing from Wednesday, a potential 100% projection outcome would be a target in the 31.50 vicinity, followed by $30.00 as another massive psychological level. On the upside, watch for supply starting from $34.00.
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Source:: FX Street