FX.co ★ CL/Crude Oil

#CL Good Saturday, colleagues. The decline in oil prices continues, as the market is no longer as concerned about possible supply disruptions. The shipping situation in the Strait of Hormuz has improved, oil exports from the Persian Gulf region are gradually returning to previous levels, and tanker traffic data confirm that supplies may soon fully recover. In addition, uncertainty regarding a possible increase in production is strengthening expectations of higher global supply, which is putting additional pressure on prices. If the situation in the Middle East remains calm and supplies continue to stabilize, oil prices are likely to remain under pressure. However, if new signs of escalation appear, the market will quickly become unstable and prices may move higher. To be confident in an upside move, we need a strong daily candle that closes above 72.97 and forms a bullish engulfing reversal pattern. Until that happens, we still focus on selling.