- WTI Crude Oil did touch a high near the 87.100 mark briefly on Friday. The price of the commodity began its trading around 82.600 last week and its low was seen early when the 82.160 ratio was seen momentarily.
- However, upwards momentum in WTI Crude Oil was essentially sparked, after this lowest depth was hit which occurred when a temporary reversal happened following a run to the 83.000 level.
Within a few hours upwards momentum and the 83.000 USD level in WTI Crude Oil was again being tested on Monday and this time it sustained value. No other reversals below the 83.000 mark happened and by early Tuesday the 84.000 level was penetrated upwards. While many folks will point to the Middle East crisis as a reason for the direction of WTI Crude Oil, this may be too easy of an excuse.
Mid-Term Values at Highs and Speculative Conditions
Yes, WTI Crude Oil is now trading at highs seen in October of 2023; this after the Israel war with Hamas became newsworthy. However, traders need to remember the price of the commodity was at nearly the exact value it sits now on the 7th of September, one month before the Hamas attack on Israel. Thus, while some analysts will point to the price of Crude Oil and say and say it is because of Middle East tension, it doesn’t make the point correct.
Certainly there are tensions in the Middle East and they could escalate from here, but the buying within WTI Crude Oil may be getting fueled by growing demand for the commodity and simple speculative conditions. Economic data has been struggling globally for a while, but there are indicators slight improvements – or at least stability – is starting to be found in Europe, Asia and other locales. The ability to go into this weekend near highs is noteworthy and trading early on Monday and this Tuesday needs to be watched in WTI Crude Oil.
Perspective Regarding WTI Crude Oil Prices
WTI Crude Oil is only trading slightly above the price it traversed at this time last year. The ability of WTI Crude Oil needs to be looked at with careful perspectives and make sure that buying positions aren’t merely reacting to noise from the media which looks for easy excuses to explain upswings in prices. The trend higher in WTI Crude Oil has been noticeable for a few months, but there have also been reversals lower which day traders need to respect.
- The movement higher in WTI Crude Oil is certainly a fact, but traders should not bet on buying positions blindly.
- The commodity did come off Friday’s highs and went into the weekend touching important short-term support levels which should be watched early on Monday.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 83.000 to 89.100
News from the Middle East should certainly be watched. If cooler heads can prevail early this week and get into Wednesday with no serious news developments this might allow for the price of WTI Crude Oil to trade within conditions in which supply and demand will again become the talking points. The notion that global economies may be starting to rebound from recessionary pressures could be helping the price of WTI Crude Oil.
If the commodity sustains price value above 86.000 USD on early Monday and into Tuesday, this could be taken as an additional buying signal for the short-term. Traders need to use solid risk management this week in Crude Oil. It is also important to point out that while support levels are certainly in focus and could be tested, price velocity if it happens in the commodity is likely to be to the upside. Last week’s lows may prove to be rather durable this week. Choppy conditions are likely to flourish.
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