USOIL has made another drop of 18% after a high visit closed to $93 on the daily timeframe. This drop confirms that the price has revisited the following daily highlighted support close to the current market price of $76. We have seen a minor buying pressure close to this level which can be supportive of a bullish reversal.
On the hourly timeframe, I have witnessed that the price formed a nice "M" formation or a double tops formation which is another supporting setup for the idea of a bullish reversal. The target expected on the bullish reversal is close to the neckline holding $82.
Oil prices fell 2% on Friday in thin market liquidity, closing a week marked by worries about Chinese demand and haggling over a Western price cap on Russian oil.
Brent crude futures settled down $1.71, or 2%, to trade at $83.63 a barrel, having retraced some earlier gains.
China, the world's top oil importer, on Friday reported a new daily record for COVID-19 infections, as cities across the country continued to enforce mobility measures and other curbs to control outbreaks.
This is starting to hit fuel demand, with traffic drifting down and implied oil demand around 1 million barrels per day lower than average.
Trading is expected to remain cautious ahead of an agreement on the price cap, due to come into effect on Dec. 5 when an EU ban on Russian crude kicks off, and ahead of the next meeting of the Organization of the Petroleum Exporting Countries and allies on Dec. 4.
On the hourly timeframe, I have witnessed that the price formed a nice "M" formation or a double tops formation which is another supporting setup for the idea of a bullish reversal. The target expected on the bullish reversal is close to the neckline holding $82.
Oil prices fell 2% on Friday in thin market liquidity, closing a week marked by worries about Chinese demand and haggling over a Western price cap on Russian oil.
Brent crude futures settled down $1.71, or 2%, to trade at $83.63 a barrel, having retraced some earlier gains.
China, the world's top oil importer, on Friday reported a new daily record for COVID-19 infections, as cities across the country continued to enforce mobility measures and other curbs to control outbreaks.
This is starting to hit fuel demand, with traffic drifting down and implied oil demand around 1 million barrels per day lower than average.
Trading is expected to remain cautious ahead of an agreement on the price cap, due to come into effect on Dec. 5 when an EU ban on Russian crude kicks off, and ahead of the next meeting of the Organization of the Petroleum Exporting Countries and allies on Dec. 4.