A wave of new beards sends oil down

Brent crude futures are trading on Friday, threatening to reverse this week's gains barely a day after markets hit their highest level in four months. The price action is motivated by the uncertainty surrounding national and global economic growth on future demand. Despite concerns, the market continues to be supported by OPEC-led supply cuts and US sanctions against Iran and Venezuela.

On Thursday, WTI crude oil and Brent both rose to new highs for the year, but barely kept pace with the rising rally when they reached the previous day's high. In fact, both ended lower, indicating that the sale could be higher than the purchase at current price levels. The price action also suggested investors not to buy the force at current levels.

When investors do not have the confidence to buy force, it usually means they are waiting for a catalyst. They are probably tired of the discourse on "OPEC-led market-driven production cuts" and would probably like to hear positive news about the progress of the US-China trade negotiations.

As long as they do not have this information, we will probably see a lot of "twists" in the charts as bullish investors become more cautious and likely to buy up rather than on strength.

Renewed concerns about demand

Worries…