Crude oil fell toward $50.54 a barrel yesterday. There are many reasons for the volatility in the market: China's stock market plunge and the Greek debt crisis, for example. Those 2 problems raised the possibility of weaker economic growth that could hit oil demand.
Don’t forget Iran — In Vienna, until Friday, there are negotiations for an agreement on the Iranian nuclear program.
Also, today official crude data inventories will be published.
From the technical side, we could see a diamond pattern:
Diamond pattern formed by two symmetrical triangles juxtaposed. The first phase of the formation of a bullish diamond is the violent drop of the price. Several technical rebounds will occur, but the trend is still bearish. A lower will be reached. This lower will define the end of the first symmetrical triangle and will be the start of another triangle. It is only after this low that the trend will reverse. The price target is equal to the height of the diamond.
This could lead to 54.80-55.30 if 52.80 will breakthrough, while down again 51.60 leads to 49-49.80