The Iran war is beginning to approach its three-month mark. The price of WTI Crude Oil remains transfixed near the $100.000 realm as nervous traders speculate on short-term wagers, and mid-term outlooks appear to be concerned about sticky higher energy prices.
WTI Crude Oil went into this weekend around $100.650 showing the ability to incrementally climb upwards nearly all of last week.
The U.S. and China summit held on Thursday and Friday of this past week had plenty of pomp and circumstance, but the Iran war and diplomatic talks between the U.S. and China brought no promise of resolve regarding the Middle East situation. Traders who were hoping for optimistic signals regarding the Iran war did not receive anything regarding clarity on the shipping of oil and other energy concerns via the Hormuz Strait.
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From Cautious Prices to Higher Levels
WTI Crude Oil never showed massive velocity downwards this past week. The commodity did see a low of nearly $93.200 on mid-Monday, went to a high around $99.300 on both Tuesday and Wednesday. Then WTI prices largely based on optimistic selling (and betting) went to a depth of nearly $95.200 a couple of times via the futures markets on Thursday, but then started to rise quickly and by late Friday was above the $101.150 threshold momentarily.
The ability of WTI Crude Oil to sustain price over $100.000 in the futures market shows that optimistic notions about energy supplies maybe running out of power. The cash market in Crude Oil remains near $105.00 and $106.00. It appears mid-term outlooks going into this past weekend may be starting to anxiously believe higher WTI Crude Oil prices are going to be seen for a while longer.
Dangers of Perceptions and Loud Rhetoric
Upon the conclusion of the China and U.S. summit there was no particular rhetoric regarding the Middle East situation that was optimistic. In fact, President Trump on Friday threatened Iran again, and the U.S administration continues to say military conflict could renew at any moment if called upon.
- The price of WTI Crude Oil finishing near its highest values for the week sets the tone for an intriguing start tomorrow when the commodity begins its wagering.
- It appears WTI Crude Oil is likely to remain within higher realms this coming week and that support levels for the commodity should be watched.
- The perception that durable support levels might equate into higher realms for WTI Crude Oil may not be wrong.
- Although it will be rhetoric and actions via the U.S White House that will influence the price of WTI Crude Oil via large players who will have to balance short-term positions with mid-term outlooks.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is $93.000 to $107.000
WTI Crude Oil looks as if it will maintain a higher stance in the coming days. The question is how high a stance this means. Having been able to maintain a top realm the entirety of last week now creates the notion that raised voices from the U.S. White House and Iran could spark further value climbs. But before folks bet blindly on upside they need to remember futures prices in WTI Crude Oil have not produced one way avenues upwards.
Highs in April during the height of threats reached the $105.000 level a couple of times with sustained value, but then selling took place. Yes, a high around $112.000 was seen in March, but that was based on fears of the unknown. Not that everything is understood or planned out now for the coming week and months, but large players in WTI Crude Oil may believe they understand potential conditions if things grow worse with Iran. Day traders pursuing WTI should remain vigilant and practice solid risk management if they choose to pursue speculative positions this coming week.
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