Oil continues to fall on large inventory buildup and economic fears of a slowdown.

Oil prices continue to fall under pressure as markets are pricing in slowdowns across major oil consumers such as China. Oil is currently down 47% from the March 2022 highs. While this is bad for oil-producing companies, this is good for easing inflation and the general public as costs will drop globally.

Looking at the oil chart, there is currently a descending triangle pattern forming with a base at around $65.00 - $65.25. A clear break below here could cause oil the flush way lower towards $60 in the short term. RSI is currently reading 36 with MACD now firmly confirming negative momentum. In March and May of this year, oil prices did fall below 30 which then caused a bounce so another flush lower could be in store before long.

Towards the upside, the triangle resistance pattern suggests resistance at about $70.50-$71.00 with the moving averages also crossing over to form a more bearish outlook.

A break above the triangle pattern would be bullish though and could see oil rally higher towards $75 in the medium term, however a catalyst such as a strong GDP number from a good economy, capped production from OPEC+ or a large drawdown that the markets were not expecting.

Oil prices between $60-$70 is likely a fine price for most of the oil-producing countries, but lower values such as $60 and below could be harmful to profitability.