Crude Crashes To 2-Mo Lows After Saudi/OPEC Promise

Oil futures tumbled to the lowest level since August after Saudi Arabia pledged to meet any supply shortfall that materializes resulting from Iranian sanctions and as tumbling equities weakened sentiment.

Saudi Energy Minister Khalid Al-Falih said OPEC and its allies are in “produce as much as you can mode."

Coincidence that they would do this (as Trump demanded) as the Khashoggi chaos continues?

Nomura's Charlie McElligott earlier noted significant de-leveraging expected of a massively skewed positioning in crude would occur around $67.70...

And sure enough, WTI puked as it hit that level...

"There are several reasons for the slide in crude oil, chief among them is it’s a risk-off day across all financial markets,"said Bob Yawger, director of the futures division at Mizuho Securities USA.

"You’re seeing people flee the commodities and equities space to most likely put their money in safe haven."

WTI held - for now - perfectly at its 200DMA...

We will see if it can hold that critical level after tonight's API inventory data.