Crude oil prices gave back the gains to settle lower on Friday. After the previous move above the 42.00 handle, crude oil pared gains.
After moving back into the range, oil prices briefly touched the 41.00 handle before a slight rebound into the close.
This puts oil prices back within the range of 42 and 41. The sideways consolidation is unlikely to end anytime soon unless backed by strong fundamentals.
Meanwhile, if WTI loses the 41.00 handle, then we expect a move back lower to the 37.5 – 38.00 region which was tested earlier in the week.