WTI has been trading in a $1.00 range again on Thursday, with a base of the $50 handle for the most part.
Oil prices have been buoyed in September, rallying from the late September lows on the $46 handle in WTI when bulls reached a high of $51.11 making for a five-month high.
However, oil prices inched lower on late Wednesday and Thursday. There is speculative positioning going on here and profit taking due to the bid dollar and post the FOMC hawkish surprise in respect to next years dot plot where three hikes are still scheduled in the Fed's plans, despite several measures of inflation running below target.
Also, casting eyes back at the calendar, traders are reminded that data from a U.S. government report released Wednesday showed a larger-than-expected weekly rise in domestic crude supplies and a sizable climb in production.
- Fed: dovish long-term - Deutsche Bank
- Fed policy is still likely to feature strongly as an influence in coming months - Rabobank
Moreover, speculative traders repositioned ahead of this Friday's OPEC/Non-OPEC announcements, that is expected to boost oil on the prospects of an extension to the production cuts, or indeed, from any mention of oil controls are discussed and announced. The members of the OPEC and other major producers (non-OPEC) will meet Friday in Vienna to discuss the market impact of the production-cap agreement.
WTI levels
Technically, the daily sticks are bullish extending beyond the100 and 200 SMAs with indicators recently moving into overbought readings. The 4-hour chart is also bullish, with the price far above the key bullish moving averages with a strong upward momentum. The key daily high and target is located at 52.00, the 24th May high. Support levels: 50.11, 49.60 and 49.10. Resistance levels: 50.80, 51.55 and 52.00.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.