The oil complex is in a battle between the perception traders, who look for more stimulative measures, and the reality traders, who see the global economy is slowing and demand for oil will continue to decline.
Aside from all of the macro issues sending oil prices lower, supply and demand are more than in balance with a bias toward the oversupplied side of the equation. At the moment oil prices are still being mostly driven by the direction of the euro and the US dollar as well as by a view that the global economy is continuing to slow.
The tensions between Iran and the West have been easing as another meeting will take place tomorrow. As such, expect more market participants to pay attention to this week's round of oil inventory data and thus impact price direction.