Oil has completed its bearish momentum (wave 3) and is now taking a break (wave 4). The consolidation zone of wave 4 is usually choppy, shallow, and lengthy.
Oil is a in wave 4 (pink), which often sees price retrace to the 23.6-50% Fibonacci retracement level of wave 4 vs 3. These Fib levels are always potential bounce and reversal spots for the end of wave 4 and the start of wave 5. It could also be possible that the wave 3 or wave 5 will become (even more) extended with an internal 5 waves. Any break above the 50% Fib makes a wave 4 less likely and a break below the support trend lines could confirm it.
Oil is either still in a wave 3 (pink) and is now building a wave 4 of a lower degree OR oil is in a wave 4 of the current degree (pink). The bearish price action has been very impulsive.