FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
FxPro information and reviews
FxPro
90%

WTI moving in a tight rangebound area


27 May 2022

In the past week, WTI’s price surged to a new two-month high level yet corrected lower and is so far breakeven in the current. Oil prices have been moving above $100 per barrel for the past several weeks, emphasizing further the risks and uncertainties related to the energy market. In this report we aim to present a brief yet informative analysis of the Oil market, providing the necessary tools for traders to work with. We will also be closing with a technical component, overviewing important levels and trends.

In the past days West Texas Intermediate prices may have come under volatility as the weekly US Crude inventories were released. Starting with the most recent one, EIA’s Crude Oil Inventories displayed a -1.02M barrel drawdown on Wednesday.

Even though drawdowns are considered to provide support for Oil prices, traders may have been disappointed to see inventories drop at a slower pace compared to previous weeks, signaling some relief for tight markets. WTI prices dropped approximately $1.65 in the next 45 minutes of the release. Another highlight came on the 20th of May, with the U.S. Baker Hughes Oil Rig Count jumping from previous 563 to 576 which strengthened WTI prices in the following hour, as a possible confirmation of higher Oil demand. Overall, traders showed readiness upon release of the data, pointing out that the weekly information should not be taken lightly as it can potentially create opportunities for orders to go through.

WTICash H4

On another front, traders may be more interested in the days ahead and especially in the following week, when the EU summit will take place on the 30th of May. Market analysts are contemplating if the EU is serious about imposing an embargo on Russian oil. Though some EU members like Hungary may not be fully in favor of a move away from Russian Oil, the embargo on Russia remains the majority choice among European countries. Russia on the other hand, has made headlines very recently engaging in talks with Iran, another nation that has faced hard sanctions by the US. This is a strategic move from Russia’s side, as Iran has managed to survive multiple years of US sanctions. The talks could form the foundation for the two nations to work closer in the near future, as according to Reuters Russian Deputy Prime Minister Alexander Novak said “Iran could become a key transportation and logistic hub for ensuring mutual transportation of goods,”.

Looking forward, Oil market prices may have further reasons to remain elevated due to some subjects being constant. OPEC led by Saudi Arabia seems to insist oil supply is relatively in balance as per Saudi Foreign Minister Prince Faisal bin Farhan, implying further output may be considered excess. Yet market participants now turn their attention towards Shanghai which could be reopening after a two-month lockdown, likely lifting Chinese demand for Oil in the short-term. Higher Chinese Oil demand combined with the notion that OPEC may not be in favor of supplying more oil could add further pressure to Oil prices.

According to our personal view, WTI continues to trade nearby the (S1) 107.65 support level and precisely at $110 per barrel. We see WTI moving in a sideways trend yet after the recent new monthly high reached on the 17th of May, we could add to that some bullish tendencies. We highlight the (R1) 115.15 resistance level as it could be a target in a bullish scenario, while above that, we may be in for a ride to the (R2) 119.05 level. In terms of lower grounds, we have already mentioned the (S1) while further to the sell side, we note the (S2) 104.30 support barrier which was tested very recently and maybe re-used. For the commodity to turn its current course into a selling one, we would require a move clearly breaching the (S3) 100.00 support. The RSI indicator below our chart is currently running just above the 50-level confirming a rather indecisive market in the short term. From a more long-term perspective, WTI remains in an upward trend from our point of view.

#source

Share:


Related

The Euro rebounded from the low
The Euro rebounded from the low

After updating its multi-year lows again, the major currency pair rebounded. The current quote for the instrument is 0.9656. Last night, the local interest in risks improved a bit, helping the asset to successfully correct...

29 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back...

28 Sep 2022

Forex and Cryptocurrencies Forecast for September 26-30, 2022
Forex and Cryptocurrencies Forecast for September 26-30, 2022

Last week, all the attention of the markets was focused on the FOMC meeting of the US Federal Reserve, which took place on September 21. The probability of another rate hike by 75 basis points (bp)...

26 Sep 2022

Trading the SPDR S&P 500 ETF Trust
Trading the SPDR S&P 500 ETF Trust

The Standard & Poor’s (S&P) 500 Index measures the market capitalisation of the top 500 US largest corporations. Many traders and investors use the S&P 500 Index as a benchmark...

23 Sep 2022

Gold pauses as traders await Fed decision
Gold pauses as traders await Fed decision

The anticlimactic performance of gold continues as the prospect of aggressive rate hikes by central banks around the world amid heightened inflationary pressures...

21 Sep 2022

Developing a forex trading plan: All you need to know
Developing a forex trading plan: All you need to know

All forex traders have different backgrounds, market views, risk appetite, thought processes and expectations. Therefore, traders should not just blindly follow what other traders do...

20 Sep 2022


Editors' Picks

HFM information and reviews
HFM
89%
IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.