Crude Oil has been bearish since reversing above $123 and despite all that has been going on, there have been good events for Oil, but it hasn’t been able to take advantage of them, continuing lower today. A report today said that Iran nuclear talks were on hold and that led to a brief rally in crude.

On Monday, OPEC+ decided to cut production by 100k barrels/day and that led to a similar fleeting rally. Now Oil prices are breaking down, running stops on a break of the August lows and $85.00. It’s not a pretty picture with little technical support until the psychological $80 level.

The bottom line here is that crude Oil is unable to keep rallying on good news and has now broken technical support. The market is clearly worried about a sharp economic slowdown in Europe, lockdowns in China and pain in emerging markets. So, the situation looks pretty bad for Oil.

Crude Oil H1 Chart – Crashing After Being Rejected at MAs

US WTI Oil has lost more than $4 during this reversal today

Earlier today in the European session we saw a bullish reversal, as crude Oil prices increased nearly $3 on the Iran nuclear deal news. But moving averages stopped the climb and now crude Oil has reversed lower again, losing around $4.50. We opened a sell Oil signal a while ago, which closed in profit pretty fast.

US WTI Crude Oil Live Chart