Oil gives back gains to trade flat after hitting fresh 7-year high
WTI crude now flat on the day
WTI crude rose as high as $83.87 but has pulled back to unchanged at $82.42 on the day.
Oil bulls have showed a remarkable willingness to buy dips in the eight-week rally from $62 but we're seeing some signs of profit taking today.
The move didn't come on any news but I suspect we're seeing profit taking. The issues that oil bulls have been highlighting for some time are going mainstream. There's plenty of talk about undersupply now and OPEC+ is facing pressure to act. There are also growing signs that Iran will come back to the table and sanctions will be eased. Democrats are much more likely to lose the midterms based on high energy prices rather than Iran policy so it makes sense for the US to soften its stance.
Technically, there are obviously some overbought signals here but here have been for awhile. I don't see any reasons to get bearish here but a deeper fall would target $80 and then the July high near $77.00.