After attempting to breakout through the upper range resistance level, all of the commodities in the oil complex failed and have been in retreat mode since early yesterday and into this morning so far.
Is the worst of the risk asset selling over or was Tuesday’s trading activity just a bit of short covering rally in a broader downtrend that is just getting underway? The market sentiment tends to quickly react to changes in the status of the global economy.
Brent crude fell below $100 a barrel for the first time since July on signs economic growth will slow, curbing demand. West Texas Intermediate oil was little changed before a report that may show a U.S. supply gain.
With geopolitics less of an issue or price driver than it was the last few weeks the main oil price drivers are likely to be any and all macroeconomic data on the global economy with oil fundamentals equally important.