Sudden shifts in the WTI Crude Oil market have been abundant for nearly four months. Last week’s trading ended with powerful selling and the commodity finished near the $82.630 mark before going into this weekend.
The last time WTI Crude Oil was within its current price realm was in the middle of April, and before that, the second week of March.
The move lower this past Friday deepened as the U.S While House announced that it would not attack Iran as planned (and done the previous day via U.S military actions), but instead was close to achieving an agreement with Iran. President Trump, although having said these words before about an agreement to come, over 30+ times, sparked selling in the energy markets with his optimistic rhetoric.
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Lower Prices and Seeing is Believing
As speculators await the opening of the WTI Crude Oil markets on Monday, news surrounding an agreement being signed between Iran and the U.S have gone into a sort of fogged filled atmosphere again. While the White House has said a deal will be signed soon, Iran still seems to be pushing for more leverage and this might make large players in WTI Crude Oil nervous early.
The lower price realm certainly was helped by a swing in sentiment which included a belief there is a heightened chance the threat of military action is fading. But the price of WTI Crude Oil actually remains within a range that can still be interpreted as cautious. Yet, if more positive rhetoric from President Trump is heard today – Sunday, then it is possible large players will find it enough to lower their anxiety about things going wrong and create more selling. But believing is seeing, and until the Hormuz Strait is allowed easier navigation for oil tankers this might serve as support per current prices.
$80.000 as a Key Level Perhaps in WTI Crude Oil
Trading conditions in the energy sector will stay lively. The price of WTI Crude Oil could gain velocity early on Monday and in the near-term as rhetoric and reality collide regarding an Iranian agreement.
Warning day traders about risk management might sound too obvious, but for those who want to jump into the commodity, they must understand sudden twists and spikes can be seen.
Profiting on momentum is a possibility, but folks need to guard against surprises.
Again, we have heard promises of signed agreements from President Trump before.
Large players who are active in WTI Crude Oil may be aiming for lower targets if there is enough impetus again in the coming days.
Certainly the $80.000 realm will be a target for big sellers.
However, while the value is a key psychological level, if nervous banter is still heard – and maybe even an escalation in saber-rattling – then WTI Crude Oil could go higher once again.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 74.000 to 94.000
WTI Crude Oil definitely is within a positive influence for the moment. But it might take evidence of an agreement however to spur on additional selling. Until the Iranian side says they are ready to sign a deal and the U.S White House says things are done the show is not over. Whether the agreement between Iran and the U.S is a good one or not per its political interpretations and perspectives, large players in WTI Crude Oil simply want to know that supply is secure and can be quickly shipped from the Hormuz Strait.
If an agreement is reached this week it would likely create more selling in WTI Crude Oil, particularly because the demand for U.S product would lessen as Middle Eastern supply routes become useable again on a large scale. Speculators need to remain vigilant, while technical charts are interesting for many, WTI Crude Oil remains under the power of sentiment shifts. Depending on the news developments, the energy sector including WTI can be expected to see a wide range of potential prices this coming week.
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