Oil up 1% to $74.20 on the day

The drop yesterday came after price tested the 2018 highs, which warranted some profit-taking perhaps. But we are seeing dip buyers quickly step in as oil is now back up 1% to $74.20 and pushing back above its 200-hour moving average @ $74.12.

In the bigger picture, there is still a strong argument for oil to keep higher but just be wary of profit-taking along the way as we approach key technical levels for now.

Looking at the whole OPEC+ issue between the UAE and Saudi Arabia, I don't see that as being a stumbling block even once an agreement is struck.

The market has had quite some time to digest all of that and the impasse will eventually be resolved, after the theatrics play out of course. But with it being a “known unknown”, any outsized reaction to that will likely be bought up down the road.

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