- The light sweet crude oil market has gotten absolutely crushed during the trading session on Friday as we got a horrific jobs report.
- Because of this, I think a lot of traders out there are starting to wonder whether or not there is going to be demand because not only was the jobs report bad, but the revisions were horrific.
So, with that being said, I think you have to look at this as a market that's falling back into what I thought was going to be the summer range. And we'll just have to wait and see how that plays out. The 50 day EMA is at $66.45 and there is massive support at $65. Anything below there would be extraordinarily negative, but I don't really see that happening anytime soon. With that being said, the market is likely to continue to see a lot of volatility because Donald Trump continues to threaten Russia with sanctions and of course tariffs on countries that buy Russian oil.
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So that does cause a bit of chaos because people are worried about the idea of a lack of supply. Since then, we've seen maybe the markets kind of take a look at that and realize that it's not going to ruin supply because OPEC has come out and said that they are going to expand drilling and the United States is now drilling more than it ever has as of the last month. So, there is plenty of supply and there's the actual threat possibly of storage being an issue. If you remember the flash crash into negative pricing, we're not there yet, but this is going to continue to put a little bit of lid on a market that typically this time of year is slightly bullish. So, I think we're going to stay in a range. I think we are right back to where we were about five days ago.
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