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I am not going to attract any fancy strains on the chart however a look on the month-to-month oil chart stands out due to the looming mirror picture from April 2020, when costs went deeply unfavorable solely to go away a largely unchanged candle.
This time it is a totally different geopolitical occasion however a lot of the identical look with costs ending the month about the place they began in buying and selling that was practically as unstable. At the moment, WTI crude oil fell $7.17 to $100.69 after briefly cracking $100.
If we see a deeper retracement it would doubtless be because of covid as soon as once more. Shanghai prolonged its lockdown right this moment for an additional 10 days and expanded it to new elements of the town. Nationwide there have been greater than 8000 new covid circumstances in China and President Xi this week doubled down on the coverage of ‘dynamic covid zero’.
If lockdowns have been to develop extra widespread it may badly sap demand for crude amongst China’s 1.4 billion folks.
Biden additionally introduced the releases of 180 million barrels from the SPR right this moment in a transfer that would assist to stability the market within the brief time period.
A closing issue to observe is Iran and a possible nuclear deal. At occasions it has appeared extraordinarily shut however the newest indicators have been extra blended.
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