While they have managed to put a floor under oil prices, the allies in the OPEC+ deal have failed to materially move prices higher. With fears of demand faltering, the leaders of the pact—Saudi Arabia and Russia—face a tough test ahead.
On top of these questions, the leaders of the OPEC+ coalition are now facing another force on the oil market—increased unpredictability in geopolitics, as the attacks on vital Saudi oil infrastructure that knocked 5 percent of global oil supply offline for a few weeks showed.
Technical Analysis: The WTI Crude Oil market initially fell during the trading session on Thursday, before bouncing significantly to form a later in the day. All things been equal though, the $50 level underneath will probably be attempted but a short-term bounce may happen between now and then. If we were to break down below the $50 level, that would be an extraordinarily negative sign. The has now reached the pressure line, increasing the odds of a reversal. A push upside will lead oil to the institutional levels at 60$ per barrel.
Holdings: Bought Oil @52.60, USOU @16.91 and UWT @9.27.