WTI oil prices have fallen again, testing values seen in late August of this year as speculators consider fundamentals and behavioral sentiment.
WTI crude oil ended the weekend with most cash and futures CFDs (contracts) below the $81.000 level. The commodity hit a high near 84.780 last week, which occurred when the WTI crude oil market essentially opened early Monday morning, and continued to see a gradual decline in prices as the week progressed. A stable supply of WTI crude oil exists globally, reducing the amount of risk-adverse trading within the commodity.
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Oil prices traded just below $90.000 on the 20th.th Concerns about the situation in the Middle East peaked in October, but commodity traders are an experienced group, and once things calmed down, commodity prices began to fall. The major oil producers do not have any problems with supply and are likely to continue operating without confrontation if calm prevails.
The possibility of WTI oil prices staying above the 80,000 level may make this commodity seem like an attractive place to buy for many speculators. This energy source may appear oversold given the potential for demand growth, speculative buying, and the ever-present risk of noise-causing news developments in the Middle East. However, the product traded below $80.000 for most of that period, from November last year to the end of July this year.
- While the US economy continues to show signs of strength and is showing statistical growth, Europe and Asia face lackluster economic indicators and manufacturing may not be able to drive demand growth in the medium term. It means that there is.
- However, India and China are large oil consumers, and certain economic indicators from China continue to be effective, although they are weak. This means that you may also find a level of support regarding the price of your product.
Technically speaking, oil prices have been falling since 20 years.th The stock has definitely broken out of the highs seen in late September, when it briefly fell below the $94,000 level. The past few weeks of trading have seen a high degree of risk aversion in global markets, but the risk appetite was clearly evident in stock indexes starting last week. The question is whether this extends to the speculative scope of WTI crude oil.
The outlook for energy demand is likely to be influenced by major purchasing countries, such as China and other major consuming countries. The drop in WTI oil prices could lead to buying from commodity companies who think now is a good time to buy and build inventory. However, last month’s downtrend is troubling for speculative bulls given September’s highs.
The speculative price range for WTI crude oil is $73.750 to $89.700.
As always, WTI crude oil prices are highly speculative. Day traders who want to bet on the direction of a commodity should use solid risk management and set legitimate targets for taking profit orders. Any kind of negative surprise due to news developments in the Middle East could impact the value of WTI crude oil. However, this instrument has previously traded below USD 80.000, and this occurred in the medium term with respect to the technical time frame.
If WTI crude begins to challenge the USD 80,000 level earlier this week, it could be a sign that energy prices could fall while commodity companies seek equilibrium. At the moment, prices above the 85.000-86.000 level look overvalued for WTI crude oil. And speculators who think this product is oversold may want to keep a more conservative upside target in mind this week by simply exploring the possibility of breaking above $81.000 and heading towards $82.000. You might think so.
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