Brent crude is holding on to gains, but West Texas is lower and pressuring the more widely used global proxy. Psychological support is $30.00. Meanwhile, there is the scuttlebutt of a price war between Saudi Arabia and Iran.
The street has digested the news from China, including the surprising data showing greater demand for crude. This is helping Brent, but the same angst we came into the week with is permeating the session. On that note, outside the economic ramifications based on demand in general, there will be ways to make money on persistently cheaper oil. There’s just enough angst, and momentum to the downside is so great, that forcing the issue at this exact moment would be a mistake.
The time to buy weakness is among us. But I still want signals, including technical signals and signs that the Fed is tempering its rate hike expectations. If the market can rally into the close, we might shift our overall buy indicator light to Yellow.