WTI Oil Forecast: Crude Juggles Below $82 but Recession Fears Limit Upside

WTI Oil Forecast: Crude Juggles Below $82 but Recession Fears Limit Upside
WTI Oil Forecast: Crude Juggles Below $82 but Recession Fears Limit Upside
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WTI Oil price is embarking on a rebound after this morning’s European open, supported by yet another weaker US dollar, capitalizing on an Asian session that saw WTI struggle in the absence of major Chinese players, as Markets remain mixed around a potential increase in demand after China reopens.

As anticipated, WTI Oil is continuing to benefit from a very weak US dollar of late as markets grapple with the potential rate hikes ahead (albeit on a lesser note). Before the Fed’s “pause” period began last week, we saw a number of officials not indifferent to a continuation of the same rate-hiking path, pointing out the dangers of persistently high inflation.

Other fundamental concepts on WTI Oil

At the moment the financial market appears to be taking the rhetoric of the Federal Reserve’s hawks lightly, as the US dollar future is continuing to weaken as at the same time markets assess the likelihood and magnitude of further rate hikes.

Investors are continuing to assess the impact of sanctions on Russian oil, with the US Treasury announcing on Friday that a revision to Russia’s crude price peak will only take place in March together with its G-7 counterparts.

This “delay” will allow the full impact of these sanctions to be understood and the G-7 nations will respond accordingly with the option not only to renew the current sanctions, but to expand them on Russian petroleum products.

Technically Black Gold is on track to attempt a break-out test of the key $82 resistance, an important level as it determines the predominant momentum but the latest fundamental events could lead WTI Oil to sortie and reach the annual level $84.34.

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Seeing a more medium/long-term situation, the underlying trend is bearish and the short could start at any moment but traders aiming downwards will probably wait for the first strong inputs in favor of a short. As objectives, the short-term prime is the annual level of $77.93 while the medium-term prime is always an annual level, in this case positioned at $70.08.

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The article is in Italian

Tags: WTI Oil Forecast Crude Juggles Recession Fears Limit Upside

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