Western Texas Intermediate (WTI) is anticipated to end the week down 0.55%. The demand from China and a weak US dollar supported oil prices. Because WTI purchasers cannot break through the 50-day EMA, the commodity is leaning down.
WTI is poised to close Friday’s trading session practically flat, as Wall Street concluded the day with significant gains amid prospects of a Fed pivot after wires reported that Fed members were considering slowing the rate of rate rises after their meeting in November. WTI is now selling at $85.17 a barrel, up only 0.19% from earlier.
Due to a weaker US dollar and increased demand from China, WTI reversed some of its previous losses.
Given that the Fed would scale down its aggressiveness, the dollar declined, which benefited the commodity priced in US Dollars. US Treasury rates reversed previous advances, weakening the dollar, as seen by the US Dollar Index, which dropped 0.88% to 111.865 from a YTD high of 113.942.
In addition, oil prices rose in tumultuous trade due to the potential for more robust demand from China. Oil prices increased after reports that the nation would reduce quarantine requirements for foreign visitors from 10 to 7 days.
The significant economies risk entering a recession due to the Organization of Petroleum Exporting Countries (OPEC) and its allies’ decision to reduce oil output. The White House decided to draw 2 million barrels per day from OPEC+, which was heavily condemned.
WTI Price Prediction
Western Texas Intermediate (WTI) gained some ground over the day and is now holding onto the 20-day EMA at $85.13 PB despite little activity. Risks are negatively skewed as the US crude oil benchmark could not move above its 50-day EMA at $86.80 over the week.
Therefore, the first support level for WTI would be the daily low of October 18 at $82.10, next the swing low of September 30 at $79,16, and finally, a retest of the YTD low at $76.28.
