Crude Oil Forecast: Volatility Amidst Global Factors
Date
7/19/2023 4:16:57 AM
(MENAFN- Daily Forex) The crude oil market exhibited a relatively stagnant performance during Tuesday's trading session, with marginal gains compared to the preceding days. Both the West Texas Intermediate (WTI) Crude Oil and brent markets showed signs of indecisiveness, as investors attempted to ascertain the next direction for oil prices. WTI Crude OilIn the case of the WTI Crude Oil market, prices experienced a modest rebound during Tuesday's trading session. Currently situated between the 50-Day Exponential Moving Average below and the 200-Day EMA above, the market's fluctuation within this range indicates the potential for heightened volatility in the near future. Several factors contribute to this uncertain outlook . Firstly, the Organization of the Petroleum Exporting Countries (OPEC) continues to implement production cuts, which directly impacts market dynamics. Additionally, the United States has depleted its Strategic Petroleum Reserve, leading to an increased reliance on the open market, a trend that is expected to persist for years.However, the specter of an impending recession looms, potentially exerting downward pressure on oil prices. In the short term, it is likely that the market will continue to oscillate between the aforementioned moving averages, reflecting the prevailing ambivalence among investors. Similarly, the Brent market displayed a similar lack of momentum on Tuesday, as participants grappled with determining the trajectory of oil prices. The market's consolidation between two significant moving averages signifies the prevailing confusion and uncertainty. An important level to monitor in the Brent market is the $80 mark. This round and psychologically significant figure is likely to attract considerable attention and generate substantial market noise. A decisive break above $80 could potentially pave the way for a move to breach the 200-Day EMA.Conversely, if the market were to break below the 50-Day EMA, it would signal a potential decline towards the $72 level. Given the prevailing volatility, traders should exercise caution and maintain reasonable position sizes to navigate the noise and potentially frustrating trading conditions.At the end of the day, the crude oil market remains caught in a web of conflicting factors. While OPEC's production cuts and the depletion of the US Strategic Petroleum Reserve contribute to a bullish sentiment, the specter of an impending recession casts a shadow over the market. As investors await clarity, it is essential to monitor key levels and exercise prudence in navigating the volatile conditions.Ready to trade wti crude oil fx ? We've shortlisted the best oil trading brokers in the industry for you.
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