This is just a warning for all the bulls in oil as there could be an important gap down at opening with another massive correction on Monday.
Fundamentals are worsening for bulls as the top oil consumers are planning to release oil from their Strategic Petroleum Reserves (SPR) to avoid massive inflation.
On the other hand with have the worsening situation in Europe with the covid spread and the cold weather will make it easier to spread it thru seasonal flu.
We have also FED meeting that will provide new info on their policy that will affect oil.
And Finally, this is the seventh week in a row that USA is adding rigs online and therefore soon we will see an important increase in their output.
Let's not forget Iran as well, that at some point we could see their oil back to the markets.
On the long run and due to the lack of investment in the oil industry for the past years, we will have a spike in prices and we will need to get used to higher prices for quite some time.
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Was not a gap down but it did opened with a crazy volatiliy, falling 1% almost seconds after opening and recovering it quite fast. Expecting more volatility on this pair for today's session.