Oil down 1% on the day to $80.74
Signs of exhaustion in oil? Perhaps.
The inability for buyers to firmly break above $85 is seeing price slowly track lower in the past few sessions following the big drop on Wednesday.
The sluggishness is continuing with price now down another 1% today to $80.70 levels.
The positive takeaway for buyers is that price is managing to keep above the key psychological level of $80. But there has been a struggle to seize back near-term momentum with the key hourly moving averages limiting gains near $82 since yesterday.
The end of the year has typically been a rather poor seasonal period for oil and after the run of gains since August, perhaps we are overdue some retracement.
But as long as the fundamental picture holds up as it is now i.e. until OPEC+ decides to shake things up more significantly, I still maintain that any major fall would only present dip buying opportunities at this stage.
