Liquid gold finds its price almost perfectly within a realm that balances the current sentiment of the marketplace as it balances fear and fundamentals against one another. News from the Middle East remains a steady stream of occasional flying projectiles fired at various things and places, but experienced large players who influence the price of WTI Crude Oil appear to have come to terms psychologically with the constant reporting. What the large players do not want to hear about is supply (and production) being stopped. Day traders trying to bet on WTI Crude Oil continue to have a selection of risks to choose as values turbulently proceed.
With almost a full day ahead before WTI Crude Oil opens for this week’s trading, prices can be looked at as if they are judging the short and near-term circumstances. Retail traders do not need to be concerned about mid-term considerations and importantly perhaps large players do not either. And this has led to higher price realms becoming sustained.
It appears for the moment that WTI Crude Oil, as it demonstrates what could be called a cautious value realm, is still clinging to the possibility conditions can change rapidly. While it would be nice to simply look at current pumping information from the West Texas Intermediate data and try to bet on price, the news that Iran is trying to engage the U.S White House in talks, and the Houthis of Yemen have fired more missiles at Saudi Arabia late last night are too crucial to not consider these element for tomorrow’s market action.
Why $100 Matters for WTI Crude Oil
Almost a perfect numerical barometer exists after the price of WTI Crude Oil danced into this weekend. $100.000 is looking at all traders large and small directly in the face. Now speculators need to decide which direction sentiment is going to turn. And with plenty of news developments potentially on the way in the coming hours, surprises could impact the gauge which can be looked at as a measurement of fear.
Will things in the Middle East escalate or not? By escalation this would mean, is the flow of Crude Oil and other energy sources going to find it difficult to be exported. WTI Crude Oil did challenge the $107.00 vicinity last Tuesday, the prices in the cash and futures markets could easily produce volatility upwards just as easily as they could suddenly show a more optimistic mood and push prices lower. Speculators need to understand the velocity that WTI Crude Oil can move is fast and doesn’t care about traders’ feelings.
Supply Risks Remain the Market’s Main Concern
Key components in the coming hours consist of potential messaging from the White House. It was reported that President Trump returned to Washington early yesterday. Reports suggested he might be engaged in discussing the Iranian proposal to end the war. Yet, a missile attack on Saudi Arabia’s capital of Riyadh will not help the mood of large players who are concerned about military escalation in this nation and implications regarding oil production and shipping.
Traders who want to take an optimistic stance and bet on lower prices emerging need to understand that the marketplace has likely become wary of ‘good results’ being merely promised. Meaning support levels below may become durable quickly. Fast lower prices in WTI Crude Oil may find headwinds develop based on doubts remaining about an easy solution to the Middle East conflict.
Why Lower Prices May Find Support
Retail speculators have an opportunity to take advantage of the current Middle East circumstances because of the price surges. But can they withstand volatility within their accounts? The price of WTI Crude Oil is moving in dramatic paces, but it is also running into a strong whirlwind of conflicting reports which are certainly causing nasty reversals to constantly be seen via intraday results. Day traders who have a belief in downwards momentum being produced on Monday should brace for a potentially large gap per WTI Crude Oil’s opening, but market conditions are certain to be reactive all day. If negative news develops the market could quickly shift gears upwards too.
Volatility Risks Remain Elevated
Simply put caution is advised in the WTI Crude Oil market. Price conditions are violent and the higher price realm is a clear indication that large players involved in the commodity have their positions situated for the potential of worse news developing, along with the hope that some type of workable solution can be found. The price of WTI Crude Oil remains within stormy waters.
WTI crude oil remains sensitive to Middle East headlines, with the $100 area acting as the key near-term reference point. Supply or shipping disruption concerns could keep buyers active, while evidence of easing tensions may pressure prices lower.
Resistance: $101.00
Support: $99.80
Upside area to watch: $106.10
Downside area to watch: $97.00
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