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MENAFN- Daily Forex) WTI Crude Oil went into this weekend near its highs as speculative chatter about the conflict in the Middle East clearly drives nervous behavioral sentiment.
The price of WTI Crude Oil went to a low of nearly 67.000 USD per barrel last Tuesday morning, but the depth quickly produced a bounce higher. As the week progressed public chatter regarding what may or may not happen in the Middle East cast a growing nervous shadow over trading sentiment. The price of WTI Crude Oil certainly increased going into the weekend as concerns grew regarding an attack on oil infrastructure in Iran.
Day traders who want to speculate on WTI Crude Oil need to understand the volatility and price velocity should be taken seriously as they bet. And the key word is bet, because wagering on WTI Crude Oil under the current circumstances is vulnerable to sudden gusts of strong volatility that make prices similar to a casino environment.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Speculative Betting on WTI Crude Oil
WTI Crude Oil will remain prone to the potential of fast trading. The prices near the 74.930 ratio going into the weekend did come off of highs seen earlier on Friday when the 76.000 realm was challenged briefly. Supply and production levels of Crude Oil remain high. In fact, Saudi Arabia was warning about lower prices earlier last week. However, saber rattling between Israel and Iran overshadowed these bearish remarks.
As the weekend comes to a close traders who are active in WTI Crude Oil and have open positions will certainly will pay attention to developing news from the Middle East. The price of WTI Crude Oil is trading on nervous sentiment which has created near-term highs. Intriguingly, speculators should keep in mind that WTI Crude Oil has traded at higher values during this past year Data Takes a Back Seat
As the Middle East grabs the attention of most traders, they should still remember the reason WTI Crude Oil traded at lows most of September was due to negative economic outlooks for the mid-term. Those economic outlooks regarding growth in the U.S, Europe and Asia remain important, but for the moment sentiment regarding unhindered supply remains the focus.
If the situation in the Middle East was to escalate and production and supply infrastructure become vulnerable this would certainly create higher prices for WTI Crude Oil. However, if the situation remains tense, but actions do not threaten supply higher prices could run into resistance quickly.
WTI Crude Oil Weekly Outlook:Speculative price range for WTI Crude Oil is 70.500 to 80.300
Betting on the price of WTI Crude Oil is dangerous for day traders at this time. Traders need to understand momentum can be affected quickly. However, if price velocity is going to hit, it will likely be to the upside this coming week. Yet, if news from the Middle East remains loud but without a furious escalation then the price of WTI Crude Oil could actually move down. One scenario that bearish traders looking for price action lower might want to consider is if Israel were to hit Iran in a limited fashion that is interpreted as not threatening oil infrastructure.
If traders feel like the situation will deescalate for the time being, prices lower in WTI Crude Oil could develop. Again, this is all speculation and retail traders need to understand the casino they are wagering within. Something could happen over the next half day before WTI Crude Oil opens for trading this week which could cause more nervousness. The price of WTI Crude Oil will be affected by supply and demand in the coming days, but the crux of behavioral sentiment and the real driver of price this week will remain the Middle East conflict. The price of WTI Crude Oil will be a good barometer globally this week that almost all players in the financial markets will give attention.
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