WTI Crude Oil went into the weekend with what almost appears is a rather calm price around the $88.280 mark. This value was also seen early this past week when the commodity began its trading. However, by Wednesday of this past week WTI Crude Oil was touching the 94.840 realm in futures markets.
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The price of WTI Crude Oil remains transfixed in a world which sentiment is playing a pivotal role in its value, this on a scale that is larger than normal. The wide gap of price differentials between lows and highs and lows again points to gyrating emotions as a cause for the price action.
The Iranian ceasefire continues to be spoken about and supposedly enacted, even as flourishes of military action are reported.
The WTI Crude Oil Supply Story
Let’s remember for a second that WTI Crude Oil is an American product. West Texas Intermediate Crude Oil of various grades is the product that is being spoken about when prices are discussed by economists, corporate officers and the media. However, the energy sector is in fact has worldwide production – via exploration, drilling and supply.
The price of WTI is what the U.S oil industry is expecting to receive for its commodity. But because the U.S price – via abundant supply – sets the tone for cash prices worldwide and because WTI is the standard because of transparency and regulation, financial institutions have their sentiment effected depending on what the price of the commodity is displaying. The Iranian situation and the Hormuz Strait saga appear ready to go on for a longer duration than President Trump wants.
Rhetoric and Prices in WTI Crude Oil
President Trumps constant changes in rhetoric regarding the current status of the ceasefire and negotiations are causing a whipsaw effect for analysts and traders.
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Thus the fact that WTI Crude Oil went into this weekend near its weekly lows again is rather odd considering that no one knows what is really going to happen with the Iranian situation.
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This suggests that large traders have become comfortable with the current status and this is perhaps causing the price range we have seen. They are betting it seems on hopeful outcomes.
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In late May the price of WTI Crude Oil did touch the $85.000 vicinity and the commodity is within its lower prices via a one month chart – showing a more comfortable attitude from large players.
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However, the climb higher in the middle of this past week, clearly shows nervousness can develop and remains ready to strike upwards via buying when emotions get rattled because of the Iranian situation.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 83.000 to 93.000
Day traders looking to take advantage of the price swings in WTI Crude Oil cannot be faulted. Certainly there are opportunities within the energy sector to wager on and profit. However, attempting to ride the momentum of moves in WTI Crude Oil remain a dangerous game. Large players have created a rather wide price differential in the marketplace which highlights there conflicting sentiment. The Iranian conflict has been going on for over three months.
The price of WTI Crude Oil is still high but folks seem to have proven resistance above is durable when higher prices are attained. The fact that WTI is within the lower part of its one and three month prices is enticing for considerations of lower values to come. But for WTI Crude Oil to break below $88.000 and once again test the $85.000 level and lower, impetus needs to come in a positive manner beyond what is being heard via news developments at the current time. WTI Crude Oil remains dynamic and traders need to treat the commodity cautiously.
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Robert Petrucci is a Market and Geopolitical Analyst at DailyForex with professional experience in the Forex, commodity, and broader financial markets dating back to 1993. His work focuses on risk analysis, macroeconomic themes, and how geopolitical events affect currencies, commodities, stock indices, and cryptocurrencies. Robert brings a conservative wealth management perspective from his long-standing advisory roles, translating complex market conditions into structured scenarios for traders and investors.
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