- Traders of WTI Crude Oil who do not hold positions this weekend are likely looking at the commodity with rather interested speculative thoughts.
- The price of WTI Crude Oil hit a low of nearly 71.780 on Friday before closing around the 72.310 ratio.
- Friday’s closing values were lows for the week and started to flirt with important mid-term support considerations.
Having started last week’s trading within sight of the 79.000 mark and demonstrating the ability to incrementally fall in price, likely struck day traders who were betting on heightened risks affecting the price of the commodity as odd – perhaps even bizarre. Additionally this same ‘speculative camp’ examining the price of WTI Crude Oil’s close this past Friday may have them scratching their heads with bewilderment and the temptation of a reversal higher.
Move towards Lows as Risks Abound in WTI Crude Oil
WTI Crude Oil went into the previous weekend near important mid-term highs and now the exact opposite consideration must be given thought. Having heard of an attack on an oil tanker on Friday the 26th of January, the price of WTI Crude Oil surged higher, and over that weekend a U.S military outpost in Jordan was struck. Yet the price of the commodity behaved quite politely all of this past week and the lows achieved this Friday brought the 72.000 to 71.000 support levels a new challenge.
- Day traders need to understand larger players in WTI Crude Oil are quite experienced with the perception of ‘risks’ coming from the Middle East.
- However even experienced large players in WTI Crude Oil are sometimes wrong, which may make some speculators still tempted to bet for a reversal upwards.
- The U.S has reacted this weekend with military strikes in the Middle East against ‘extremists’ targets, but this doesn’t mean large players in WTI Crude Oil are guaranteed to suddenly become frenzied buyers.
Top Forex Brokers
Commodity Trading in WTI Crude Oil has Complex Mechanics
Day traders need to understand plenty of supply in WTI Crude Oil still exists and as of yet a credible threat to supply of the commodity has not occurred. The Red and Arabian seas are still seeing shipments of Crude Oil and production has not been harmed. While the news of Middle East tensions certainly has gotten the attention of all it may take a larger event that is unforeseen to make the price of Crude Oil suddenly jump again. Having touched a high over one week ago, speculators looking for a reversal higher cannot be blamed, but they cannot know for certain a jump in the price of WTI Crude Oil is going to occur.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 70.580 to 79.150 USD.
Traders who do not hold positions in WTI Crude Oil as tomorrow’s market opens may want to simply monitor the price of the commodity upon its opening, because it is likely volatility will strike. While it might seem absurd to many traders that Crude Oil prices could actually move lower tomorrow it isn’t out of the realm of possibility. If WTI Crude Oil falls below the 72.000 level and sees sustained trading beneath on Monday, this could be a strong indication other bearish factors are weighing on the commodity.
Traders who are betting on a sudden reversal higher in WTI Crude Oil and dreaming of big profits need to stay realistic. Small retail speculators need to understand market forces in WTI Crude Oil include buyers with national interests and their information regarding supply and demand is likely better than folks who are merely betting on the direction of the commodity to suddenly spring to life. A move above the 73.000 level that is sustained early tomorrow would show some nervousness has been delivered, but WTI Crude Oil will have to penetrate the 74.000 and 75.000 USD levels to prove that a change has started to take place in the outlook of large players again. The price of WTI Crude Oil has been an excellent barometer of global risks the past two weeks and it will likely continue to offer good clues regarding global behavioral sentiment.
Ready to trade the WTI/USD exchange rate? Here’s a list of some of the best Oil trading platforms to check out.