It also looks like some of the bigger players jumping online could boost demand, but there is a bit of a lag between China’s reopening and high oil demand. West Texas Intermediate crude pulled back slightly during trading on Thursday to test the crucial $75 level. The market has previously seen 3 strong days that we haven’t seen in a long time. However, this is an oversold feature and now I think reality is starting to turn. Advertisement Take advantage of today’s movements in crude oil Trade now The long-term trend is reinforced by the 50-day EMA around the $82 level and is falling. The $80 level will naturally offer resistance, and the mere fact that global markets are starting to price in the idea of a slowdown should continue to weigh on oil consumption and demand. With demand falling as it has been, it will be interesting to see what OPEC does next as it is only a matter of time before they start to lose their sense of humor. It is believed that OPEC will probably try to cut production soon, but if there is a lack of demand, there is not much the cartel can do about it. It also looks like some of the bigger players jumping online could boost demand, but there is a bit of a lag between China’s reopening and high oil demand. Plus, every time we hear about China’s reopening, something happens to kill some enthusiasm. Liquidity is starting to dry up USD had a very strong day during Thursday’s session and of course commodities are affected. It just costs less US dollars to buy , barrels of oil than yesterday. At least until we break above the 50 day EMA I would see this as a market area to start buying because it was so negative that it would be comfortable to own oil in this situation. On top of everything else, we’re entering a new year, which means liquidity will dry up. Anything can happen in a situation like this, but frankly, nothing often dies. In other words, we can be content to just hang around negatively in the field we’ve been in for a while.