- WTI Crude Oil will begin this week of trading near the 66.630 via futures pricing on many brokers platforms.
- The commodity has continued to see a price squeeze downwards based on proactive energy policy from the White House. The narrative that the Ukraine and Russia negotiation impasse from the previous week may have a lasting effect on sentiment did not prove to be true.
- Perhaps the notion that some large players in WTI Crude Oil are contemplating a potential recession is a reason for lower prices, but again day traders need to be careful about hyperbole coming from some analysts and media members who may be letting bias into their perspectives.
- The simple fact that WTI Crude Oil continues to move lower under the Trump administration because of proactive energy policy which includes less restraints on production is legitimate.
Support Levels and WTI Crude Oil Price Realities
Now that WTI Crude Oil has hit the lower part of its mid and long-term price range, traders will have to start considering where support levels might start to prove durable. Selling WTI Crude Oil since the middle of January has proven to be a solid wager for traders with patience and the stamina to deal with reversals higher and then a return to the lower trend. However, at some juncture WTI Crude Oil is certain to run into dynamics regarding costs of production and demand, which will start to create areas where speculative outlook may finding buying impetus.
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The ability to break below the 66.000 USD ratio in WTI Crude Oil this past week was intriguing. Long-term price charts show challenges to the 65.000 vicinity in the spring of 2023 and late December 2021. But it has been a handful of years since WTI Crude Oil has slumped below with the 64.000 to 63.000 price levels in a sustained manner. Looking for more downside pressure in WTI Crude Oil may remain the flavor for speculators, but they should begin to think about where a floor will be found.
How Low Can Crude Oil Go?
After touching lows on Wednesday and Thursday of this past week, WTI Crude Oil did start to traverse upwards again. The movement higher lacked price velocity which seems to indicate large players feel the commodity belongs within its current realms.
- The price range of WTI Crude Oil may start to see a consistent test of its current realm, the question is where speculators will feel comfortable to test wagers.
- The 66.000 to 67.500 price range may become the playing field, but traders certainly need to be on the lookout for outliers and listen for possible loud noise to sometimes effect sentiment.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 64.900 to 68.400
The price of WTI Crude Oil has certainly delivered the lower price range that has been expected. But now that lower values have been attained, traders need to start asking where support levels are and will factor into potential reversals. Speculators should brace for the potential that current values now being demonstrated might begin to become an area where prices get choppy as large players trade and look for advantages.
The Trump administration’s proactive energy stance in not going to change, this creates a fundamental component in WTI Crude Oil which should keep the price of the commodity rater restrained. Looking for too much upside in WTI Crude Oil is likely a mistake, using targets and cashing out trades when they have achieved their technical goals is important. Technical perspectives within these current lower depths will be important. While it is true that WTI Crude Oil may see more downside pressure, traders also know that costs of production will factor into the futures price and create some support. Crude Oil has seen a strong downtrend emerge since the middle of January, and perhaps it isn’t over yet. This weeks’ trading will be interesting to see if support starts to become more durable.
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