At the start of the day, oil look poised to crack lower as the downside break from yesterday seemed to gather some momentum. But now as we look towards US trading, it has been a solid turnaround instead for oil to turn higher on the day.
It’s still a bit early to call this a win for dip buyers just yet but it is encouraging. There is little in terms of headlines to work with for oil traders this week and the moves have been all about the flows instead.
The technicals are where one can lean on in times like these and the 100-day moving average (red line) is proving to be a key battleground at the moment alongside the 61.8 Fib retracement level at $104.69.
One would think the dismal readings from France and Germany earlier would have weighed on the oil outlook i.e. softer demand considering that was the focus from Fed chair Powell’s comments this week. Instead, here we are.