Two Factors Impacting Oil Prices

NYMEX:CL1!   Light Crude Oil Futures
Oil has plummeted over continued issues on the supply and demand side. The Omicron variant of the coronavirus has impacted demand considerations as global governments consider yet another wave of lockdowns. We smashed through the 70 handle, but found support at 67.91. After a green triangle on the KRI confirmed support, oil was able to regain the 70 handle, and is currently hovering just below our level at 72.25. We do appear to be witnessing a bull wedge forming, but the Kovach OBV is still very bearish , despite the relief rally. This suggests that we aren't quite ready to see higher levels yet, but 72.99 is the next target if we see a bid. From below, there is a cluster of levels to provide support, with 67.91 to be the floor for now.

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