Even As Economy Looks Strong, Oil Signals Otherwise

While the economic and headline news remains bullish on the economy, oil is telling a different story. Oil has broken a bear flag pattern, signaling further downside. First support is not until $60/bbl, followed by $53.00bbl.

While some of the weakness in oil can be blamed on increases in production by OPEC+, this much weakness signals an expectation that the U.S. and global economy is slated to slow.

Overall, look for oil to trade lower in the coming weeks/months.