Eoin Treacy's view The last really important move in oil's price action was the massive reaction against the prevailing uptrend in early May. Prices have since steadied and rallied back towards the $120 area where they encountered at least short-term resistance this week. Today's downside key reversal increases the potential that supply is returning to dominance. I initiated a short position in the September contract selling at $116.41 including spread-bet dealing costs of 9¢.