If EU efforts to ban Russian oil fall apart, there could be a real rout in oil.
Technically, it earlier looked like oil could break the wedge pattern that’s been forming for two-and-a-half months. Instead, that’s starting to look like a false breakout as oil reverses to $108.21 from a high of $111.37.
There’s lots of room for a ‘catch down’ trade in oil if the market gets further jitters about global growth. Crude has been remarkably resilient in the last few weeks.