- The light sweet crude oil market has been bullish during the trading session here on Monday as we continue to see a lot of volatility. Of course, some of that selling on Friday would have been fear over the U.S. Chinese trade situation and the tensions picking up. Now that it seems like it's abating a bit, it does make a certain amount of sense that we rally in order to get a bit of a relief rally.
But I think that's all that is here is a relief rally. I do not expect this market to go screaming to the upside at this point. And I still think it remains very much a sell the rallies type of situation at the first signs of exhaustion. have no interest or uh anything else trying to get too cute here. I am fading this market. There are a lot of concerns about global demand dropping anyway. And of course we have an oversupply situation coming out of Russia, OPEC and the United States all producing as much oil as they possibly can. The resistance barrier above current trading sits at the $60 level and extends all the way to the $62 level. So, it's not until we break above there that I'd even remotely consider buying crude oil. And quite frankly, I don't think that ends up being a thing for me either. So, I'm looking at this as an opportunity to short the market at the first signs of real exhaustion, because quite frankly,
Oil Still Seems Weak Overall
Oil just hasn't been able to get out of its own way for the last several weeks, even before the escalation and tensions between the Americans and the Chinese. So therefore, I just think that the market's trying to tell us something. I think it's trying to tell us that oil just doesn't have any real pricing power at the moment. I don't necessarily think it collapses, but I also think that it's going to be easier to sell oil than to buy it. oh
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