The Crude Oil price peak is behind us Oil lost more than 10% in just over 24 hours, starting to decline late in the day on Monday. WTI crude fell to $91.30 as it sold off. Having lied on the way down stop orders, oil at one point fell below the 200-day moving average.
Oil has not traded consistently below this level since November 2020, throughout the last bull market. Notably, Biden’s election victory was the start of a rally across a wide range of risk assets from the Nasdaq100 and crypto to oil and other commodities. However, equities and cryptocurrencies have already zeroed in on that rise, while black gold is now around 150% more expensive than it was at the start of the active upcycle.
However, we remain of the opinion that the tide in oil has already turned. Since June 9, i.e. for more than a month, we have seen a downtrend in oil prices with a succession of lower local lows and higher highs.
