The US Oil Rollercoaster: Can The US Oil Industry Bounce Back From A 9-Month, 40% Price Plunge

• Japan buys Russian crude oil, deviating from U.S.-led efforts to control prices.
• Decision may impact Japan's energy costs and global oil market dynamics.
• Oil prices have experienced significant shifts recently, with a 40% drop and a 17% rebound.

In a surprising move, Japan has decided to purchase crude oil from Russia while other countries continue to keep their distance from Russian oil following their war over Ukraine. The government has given the green light to purchase Russian crude oil, which was bought above the $60 per barrel price cap.

This decision has caused quite a stir, as it marks a significant departure from the U.S.-led efforts to control the price of Russian oil imports.

Efforts to reduce the reliance on Russian fossil fuel imports through a global initiative have hit a snag as Japan chooses to go its own way. While the U.S. was leading a charge to limit oil purchases above a specific price, Japan has opted to break away from the agreement and pay higher prices.

This move marks a significant departure and could shift the balance of power in the quest for energy independence.

The outcome of this decision may cause ripple effects beyond just Japan and Russia. This move could impact Japan's energy costs and potentially encourage other countries to seek alternative affordable energy sources.

However, Russia could also reap financial benefits if more countries opt to purchase their oil at prices above the newly imposed cap.

The world of oil has been going through some significant shifts lately, so let's see how this has impacted the price of oil. If you've been keeping an eye on the charts for oil, you might have noticed that things have been getting a little bumpy.

Since June of last year, we've seen a pretty significant drop in price of around 40%. From that high point of $123, price came down to find support at last year's low.

Last year's low at the $70 round number formed a solid level of support, but this level did not hold for very long as price then traveled slightly further down to the weekly 200 simple moving average. This new level served as a hard stop for price because it then bounced off the support level and began climbing.

In just two weeks, a bounce catapulted price up by 17%. And more recently, price unexpectedly gapped up by 5%, opening Monday significantly higher than the Friday before.

Amidst the ongoing discussions and speculations about oil, the future trajectory of its price remains ambiguous. The recent hike in price could spark a wave of buying in the upcoming months, but short-term moves do not indicate a long-term trend.

A pattern of higher highs and higher lows will help us to determine if a bullish trend is unfolding.