While the U.S President tried to find someone to blame for the high Crude Oil prices in the United States other than himself, the price of WTI Crude Oil actually did start to decline early last week.
The price of WTI Crude Oil will enter this week of trading having seen its value decline from a high above 92.40 to around 84.55 USD.
Crude Oil speculators continue to face challenging circumstances as volatility remains under the spell of technical and speculative swirling price storms. On October the 7th and 10th the price of West Texas Intermediate Crude Oil traded above the 92.00 level with sustained price action. These highs were produced in the wake of OPEC’s announcement that it was going to cut Crude Oil production substantially because it felt demand was going to decrease, because of worsening global demand due to recessionary conditions.
The cut in Crude Oil production caught the eye of the U.S White House which claimed that OPEC was making this move in coordination with Russia influence. However, this claim can certainly not be proven and it entirely likely that Saudi Arabia simply can decipher demand for Crude Oil better than President Joe Biden. While the U.S President tried to find someone to blame for the high Crude Oil prices in the United States other than himself, the price of WTI Crude Oil actually did start to decline early last week.
The Price of WTI Crude Oil remains Elevated and Speculative
WTI Crude Oil suddenly began to decline in value on late Monday and it continued into Tuesday, this as the price dropped from nearly 92.00 to around the 86.70 value. A reversal higher was then seen which can be interpreted as a natural market reaction up to around 88.00, but by Thursday the price of WTI dropped to a weekly low of nearly 84.50. Another reversal higher happened which again saw a value of above 88.00 displayed.
However, late on Friday the price of WTI Crude Oil suddenly began to move lower again. This may have been a combination of behavioral sentiment from growing nervousness regarding global economic conditions which could affect demand for the commodity, and technical speculation.
- Traders should be braced for further displays of volatility within WTI Crude Oil; its price range is choppy.
- The price of WTI broke lower at the end of last week, but it is still within sight of last week’s higher prices too.
Crude Oil Prices Remain Inflated and in the News
Traders may want to speculate on downside pressure suddenly showing a durable run lower, but this could be a costly mistake. It may be tempting to bet that the price of WTI Crude Oil is going to keep falling this week after Friday’s price performance. However, the value of the commodity has shown the ability to burst upwards too. As much as the U.S White House may want the price to fall, the price remains within an elevated range and would likely need additional ‘bad’ economic news to show speculators that demand is going to decrease substantially.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 79.20 to 92.20 USD.
Fast conditions will likely remain part of the trading landscape for WTI. The opening prices for Crude Oil should be watched carefully on Monday morning, this after the weekend of ‘economic outlooks’ by speculators and producers being considered. While a shadow of global recession is certainly threatening to cast a dark cloud over the landscape, Crude Oil is still needed to make sure nations and corporations produce adequate supply and their by-products. The demand for WTI is not suddenly going to vanish.
If the price of WTIC Crude Oil falls below 84.00 it would be intriguing and support should be looked at near the 83.10 ratio. A fall below this could spark a test of 82.50 to 81.60 USD. Any drop below this level likely means a substantial amount of nervousness has hit global markets again and a potential fall to late September prices near the 79.40 mark would have to be considered.
However if WTI Crude Oil were to suddenly move higher in the next couple of days, all it would take is a challenge of the 87.00 level for traders to ‘fear’ another bullish run is going to develop. It should be remembered that OPEC cut its official oil production numbers in the past week because it wants to stabilize prices near their current levels. If the 87.00 value is tested again and 88.00 USD came into sight, bullish traders could be tempted to look for slightly higher realms.