Crude Oil has fallen away today on the back of news that oil mogul Saudi Arabia is considering selling oil in currencies other than the USD if legislation in the US changes.

The legislation that is proposed is known as NOPEC and exposes OPEC members to US antitrust law. Antitrust law is a collection of laws that regulate how businesses operate. With the key concept that they operate fairly and to the benefit of consumers.

Clearly, OPEC operates with one goal in mind – to benefit themselves. They regularly manipulate the price of oil to achieve the maximum possible dollar gains. They do this by reducing supply to push prices higher of WTI.

In recent years, the moves have become far less effective as the large supply coming from US shale producers is starting to outweigh what OPEC can produce.

With that said, the proposed legislation is still unlikely to pass, so these headlines today are really just politics to some degree. But it does feel like another US-China type battle, where the US is starting to get sick of getting pushed around. And as we’ve seen with China it is possible to introduce measures and get changes made.

The Technical Picture

Oil has been on a bull run, rally since the start of the year and continues to hold up strongly at each of the major levels.

Today’s news and a fall yesterday are the first sign that things might be slowing.

60.00 is really the big technical level that we need to be watching. The bull trend will remain intact in my opinion, while price holds above that level.

I’d be watching the jobs number tonight closely as well as that will have an impact on how we close out the week.