Crude Oil Forecast: Surges Higher On Friday
Date
11/20/2023 11:18:55 PM
(MENAFN- Daily Forex)
The crude oil markets displayed notable momentum during the Friday trading session, as they endeavored to regain stability after a recent downturn. The West Texas Intermediate (WTI) Crude Oil market had a rebound on Friday, hinting at a potential attempt to recapture the $75 per barrel level, and then in fact did exactly that.
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The previous day had witnessed a substantial breakdown in the market, raising concerns about the direction of future price movements. If the $75 level now acts as resistance, and its broken, things are going to be difficult. A successful recapture of this level may pave the way for a potential move towards the $80 mark. The prevailing sentiment in the crude oil market seems to revolve around a massive recession or even a depression, according to the latest drama.
On the geopolitical front, several factors loom large, capable of severely disrupting global oil supply. Such uncertainties continue to exert pressure on oil prices. Moreover, OPEC may opt to intervene by cutting production if market conditions deteriorate further. This looming possibility provides some reassurance that the downside risk in oil may be contained. However, we haven't seen much in the way of jawboning coming out of the Middle East at the moment. Also, speaking of the Middle East, the conflict could cause volatility as well Markets Find Themselves in a State of Flux
Meanwhile, the Brent market also witnessed a modest rally during Friday's trading session, signaling an attempt to establish a new support level. The $80 level being broken to the upside is a good look, as traders are looking for value again. A decisive break above the high of Thursday's bearish candlestick formation would carry bullish implications and potentially propel the market towards the 200-Day Exponential Moving Average . This would obviously be a major move to the upside. The oil markets are probably overdone to the downside now, and the rise makes a certain amount of sense at this point in time.
In the end, the crude oil markets find themselves in a state of flux, with prices swaying in response to a complex interplay of economic factors, geopolitical tensions, and market sentiment. As traders and investors grapple with these variables, the path ahead for oil prices remains uncertain, emphasizing the need for vigilance and adaptability as far as position size in this market.
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