WTI down over 1% and enroute to a  61.8% Fibo and Aug resistance

• Saudi Aramco has already restored 50% of lost production.
• WTI enroute to the 61.8% Fibo and Aug resistance.

The price of oil has fallen in recent trade, down over 1.4% at the time of writing having travelled between a range of $59.41 and $57.72.  Indeed, Yemen's Houthi rebels, who are backed by Iran, say they were responsible for the drone strikes have warned of more to come and the market is on edge. 

Trump and the UK have discussed a 'united diplomatic response' to the Saudi Arabian attack which is contrary to the belief that war could be averted. West Texas Intermediate crude for October delivery dropped 65 cents, or 1.1%, to $58.69 a barrel on the New York Mercantile Exchange, after shedding 5.7% on Tuesday. 

Saudis are using its reserves to supply oil to customers

Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said that Saudi Aramco has already restored 50% of lost production since the weekend disruption. The Wall Street Journal reported that the Saudis are using its reserves to supply oil to customers is already supplying customers at pre-attack levels and the kingdom expects normal production of 9.8 million barrels a day will return by the end of September.

WTI levels

The price surged to the vicinity of a 127.20% Fibonacci extension of the July swing highs to Aug swing lows but has since moved back below the 58 handle and is enroute to the 61.8% Fibo and Aug resistance just below the 57 handle. On a re-escalation of fundamentals, the April highs at 66.58 will b back in vouge.