The declines in oil prices continue as prices touched a one-month low at 40.20 on Thursday.
The declines come following a rebound in the US dollar. With prices trading near the 40.00 level, we could expect the sideways price action to emerge once again.
However, this is likely if oil prices manage to settle within the 40.00 and 42.00 levels.
For the moment, the retracement has pushed prices above the 40.00 handle.
The gains could see price action attempt to retest the 42.00 handle.