- WTI Crude Oil did achieve a brief high within sight of the 64.000 USD price on Tuesday after a brief spike higher. However, after starting to reverse lower from this sudden show of buying,
- WTI Crude Oil began to steadily creep lower again and fell back to prices it has essentially tested since the first week of April.
- On the 1st of April WTI Crude Oil was near 70.000 USD, by the 9th of April the commodity was below the 55.000 USD mark. The low for WTI Crude Oil last week was around 59.900 and interestingly this was achieved on Friday.
- What some fundamental traders may be considering regarding behavioral sentiment in WTI Crude Oil is the notion that the commodity tested its low for the week going into the U.S Memorial Day weekend.
Sentiment and Driving Season with Cheaper Gas
The idea that WTI Crude Oil was capable of going into this U.S holiday weekend near lows needs to be contemplated by traders because Memorial Day marks the start of the summer driving season in the minds of energy companies. Meaning that WTI Crude Oil prices showed they were polite and quite comfortable as large traders consider their mid-term outlooks for demand via known supply. WTI Crude Oil remains in a position to technically test the lower boundaries it has traversed since early April it appears. Driving season presents demand for Crude Oil, but it appears supply is perceived as good.
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WTI Crude Oil has certainly taken on the look of a commodity that doesn’t have much opportunity for a sudden and sustained bullish move higher. Tuesday’s spike higher proved that it didn’t have staying power. Day traders were likely hurt if they were on the wrong side of the upwards swing on Tuesday, but once resistance kicked in around 64.000 (which is a rather low price for WTI Crude Oil) the downward direction was rather sustained.
Near-Term Considerations for WTI Crude Oil
Traders need to understand the Trump administration is backing up its proactive energy stance with actions and have opened the doors for producers to drill.
- It does take a while to set infrastructure up in order to drill for WTI Crude Oil, but the sentiment generated by the pro-energy stance of the White House has created the realization that supply will remain efficient.
- This creates headwinds on WTI's ability to traverse beyond values that resistance has proven durable.
- On the 23rd of April WTI Crude Oil did touch a high around 64.750, but by early May the price of the commodity was challenging 56.000 USD.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 58.500 to 63.100
Technical traders may find that they have an advantage in WTI Crude Oil this coming week and well into June. Trading will be of interest on Tuesday when WTI Crude Oil opens after the long U.S holiday weekend. Having tested lows before going into the weekend, if the commodity remains near lows on Tuesday going into Wednesday it will suggest that some larger players may believe further downside price action will be seen.
However, within this known lower price range, traders need to understand there may not be a lot of significance psychologically for larger commodity firms unless WTI Crude Oil drops below 60.000 USD once again. Tests higher in oil will be seen, but these moments may continue to develop based on a belief WTI Crude Oil is within oversold territory. Highs sustained over 62.000 since the 24th of April have been infrequent.
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