Top Regulated Brokers
Large players in the commodity while keeping values in what may appear to be a realm that flirts with lower levels, also feel compelled to remain cautious about their near-term outlooks. While WTI Crude Oil supply remains steady it is a certainty that the constant rhetorical exchanges between Iran and the U.S are making traders uneasy about becoming too optimistic. As WTI Crude Oil gets set to open on Monday morning it will have two new storylines to follow for speculators.
Oman and Venezuela Developments and Effect on Crude Oil Values
Reports from the Middle East indicate that Oman and Iran may have agreed to allow transit of oil tankers in the waters near the Musanadam Peninsula which is part of the southern coast of the Hormuz Strait. This is important because in theory it would allow tankers with Iranian oil to navigate more freely. However, it could cause the U.S military to intervene and escalate tensions. The U.S White House has been trumpeting that it controls the Hormuz Strait and this has helped create calm in the price of the commodity.
If Oman were to allow Iran access to their waters it then gives President Trump a decision to make, would he punish Oman – in the past Trump has said he would act if Oman and Iran made a pact. On top of the Oman and Iran developments, the U.S and Venezuela seem to have made an agreement about Crude Oil on Friday which will create ripples regarding mid-term outlook. These two factors will create interesting considerations for large players and could effect WTI Crude Oil values on Monday.
Iran Wants to Complicate President Trump’s Political Situation
WTI Crude Oil closed near the $84.060 price on Friday. On Thursday the commodity challenged the $85.00 ratio but reversed downwards. The higher prices in WTI Crude Oil developed after selling pressure took WTI below the $80.300 level momentarily on Wednesday. The price dynamics remain fast in WTI Crude Oil and this is unlikely to change. While the Trump White House is trying to talk calm into the marketplace in order to make people feel more tranquil about inflation concerns, the question is how much will Iran try to agitate conditions in the Hormuz Strait?
Let there be no doubt that Iran fully understands the U.S mid-term elections are drawing closer and would like to complicate the political situation for President Trump. Traders of WTI Crude Oil need to monitor the Middle East situation as they have been doing the past handful of months because the price of the commodity is being effected by shifting rhetorical winds – the potential Iran and Oman pact could be another catalyst for storms.
Will President Trump Remain Quiet About Oman and Iran’s Deal?
The 80.000 to 85.000 price range in WTI Crude Oil has begun to look like a cautionary frame of reference for traders, except it is important to note that early last week the price of the commodity was actually higher. The market will open on early Monday morning with news potentially developing about the Iran and Oman pact and traders will try to make decisions based on what complications could be seen in the coming days.
The remaining hours today, Sunday, also opens a window for potential rhetorical blasts, particularly if President Trump reacts to the news. However, there is also the possibility the White House will say nothing. The Trump White House has clearly shown an ability to reverse its stance quickly and without warning. Perhaps WTI Crude Oil will remain completely calm via its price if there isn’t a big reaction from the White House.
WTI Price Chart
Looking for Lower Prices Based On Optimistic Sentiment
The price of WTI Crude Oil has become a roulette wheel for traders. Opportunities certainly exists for profitable wagering in the commodity, but day traders need to understand the tendency of WTI Crude Oil to suddenly reverse remains dangerous for the unprepared. Resistance above may look tempting to try and look for lower momentum, but reading behavioral sentiment is not an easy task particularly when news developments continue to deliver updates that can affect the emotions of large players. Looking for downside velocity based on an optimistic approach may feel right, but remains difficult to seize. Take profit orders should be used by day traders to cash out winnings and escape the market quickly.
Rapidly Changing Price Values a Dangerous Speculative Force
The rather wide price realm of WTI Crude Oil the past week should serve as an instant caution sign and give day traders pause. Risk management in the commodity remains ultra-important to avoid sudden fluctuations which have been abundant. While lows were made on Wednesday, trading in WTI Crude Oil showed an ability to suddenly burst higher with a large price differential Thursday. Speculative force in the marketplace remains fierce as price directions change rapidly.
WTI Crude Oil Short Term Outlook:
Current Resistance: 84.450
Current Support: 83.800
High Target: 86.300
Low Target: 81.500
Ready to trade our WTI Crude Oil analysis? Here is our list of the best crude oil brokers worth reviewing.