Oil falls $3 as geopolitical fears ebb

<p>The theme of the day in global markets is 'sell the fact' on the Gaza ground invasion because it hasn't expanded into a broader regional war, at least not yet.</p><p>Oil is basically back to where it was before Hamas terrorist attacks after several days of chopping back and forth. The main level to watch is the October low of $81.50, that needs to hold to keep the bulls in chart. If it does, it will add to a series of higher lows as OPEC continues to tighten the screws on global oil supply/demand.</p><p>The big downside risk is some kind of US-Saudi alliance where MBS agrees to pump more in exchange for US security guarantees. Otherwise, the downside risks are related to slowing global growth.</p>

This article was written by Adam Button at www.forexlive.com.