So much for that upside breakout last week.

Brent’s climb above its 50-day simple moving SMA proved short-lived, as prices were resisted at their 100-day SMA before hurtling back down towards the psychologically-important $80/bbl mark.

Overall, Brent has been rangebound so far this year, and is set for its biggest weekly loss in 5 weeks.

Fed Chair Jerome Powell’s hawkish statements this week triggered a risk-off wave coursing through financial markets, as the surging US dollar heaped downward pressure on the commodities complex.

As the likes of the Fed and the ECB pledge more rate hikes in order to vanquish stubbornly-elevated inflation, the prospects of further policy tightening threaten to undermine global demand for oil.

Such fears are being manifested in the bearish structures in the oil options market, offsetting the optimism surrounding China’s economic reopening.

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