Crude Oil faces continued bearish pressure after OPEC news
|Crude oil firstly rallied for a bit yesterday, on the news that OPEC's planned production increase starting in October will be delayed. However, that rally was short-lived. It's important to note that production increases are still on the horizon, and this should have a bearish impact on energy prices. It's not surprising that energy retested the lows later during the US session, suggesting that the decline remains strong. From an Elliott Wave perspective, the move appears impulsive, so I expect further weakness after a potential wave 4 rally, which could head back to the 71-72 resistance area. The invalidation level is at 74.57, and as long as this holds, the trend for crude oil remains bearish.
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