Traders remain concerned about global demand, exerting downward pressure on crude oil prices, despite recent production cuts by OPEC to counter falling prices.
- The West Texas Intermediate (WTI) Crude Oil market witnessed a slight pullback during Thursday’s trading session, reflecting the prevailing noise and volatility in the market.
- From a technical perspective, the $70 level emerges as a significant support level, both structurally and psychologically.
- However, the market continues to exhibit indecisiveness, as it navigates through choppy and uncertain conditions.
Global concerns regarding a potential major recession and its impact on global demand have generated negativity in the market. Despite these worries, the WTI Crude Oil market may experience some insulation due to its status as the preferred grade of crude oil in the United States. The US market has seen a surge in demand, providing some support. Nevertheless, the market will likely remain volatile, resulting in a short-term consolidation phase.
The Brent Crude Oil market also experienced a mild pullback, consolidating just above the $75 level. Currently, the 50-Day EMA is approaching and could act as a dynamic resistance. On the downside, the $72.50 level has provided short-term support, with close attention paid to the key level of $70.
Traders remain concerned about global demand, exerting downward pressure on crude oil prices, despite recent production cuts by OPEC to counter falling prices. Considering these market conditions, attempting to fight the prevailing trend may prove futile. As a result, signs of exhaustion in the market are likely to be viewed as selling opportunities. However, it is probable that we will see a lot of volatility regardless, so choppy short-term trading might be the way forward more than anything else. Oil continues to see a lot of external pressure from multiple areas, and with this, indecision could sometimes cause traders some indigestion.
At the end of the day, the WTI Crude Oil market experienced a modest pullback, with the $70 level acting as support. The market’s consolidation reflects ongoing noise and choppiness. Global demand concerns persist, casting a shadow over crude oil prices, despite production cuts by OPEC. Similarly, the Brent Crude Oil market saw a minor retreat above the $75 level, with the 50-Day EMA potentially offering resistance. Key levels to monitor include $70 and $72.50. Traders should exercise caution and consider selling opportunities during signs of market exhaustion. Also, the US dollar could be influential as to where the oil markets go, so pay attention to currency movements as well. The overall attitude of the market will continue to fluctuate with other markets as well.
Ready to trade our WTI Crude Oil Forex? We’ve made a list of the best Forex Oil trading platforms worth trading with.