Analysis of WTI Crude Oil Technicals
The West Texas Intermediate Crude Oil market has dropped during Wednesday’s trading session, as a lack of demand continues to weigh heavily on the crude oil market. A couple of days ago, it was reported that OPEC was going to increase output by 500,000 barrels, but Saudi Arabia promptly refuted this claim. This prompted crude oil to rise above $80 once again, causing a slight increase. However, traders have begun to focus on the lack of demand once more, and if we break below the bottom of Monday’s candle, this market might decline significantly.
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Analysis of Brent Crude Oil Technical Data
The Brent market has also declined, in parallel with the WTI market. Ultimately, this market appears to be attempting to test the hammer from a few days ago, and if it falls below that level, Brent will collapse alongside WTI. On the upside, if we can break above the highs of the last several days, this market may target $90, or maybe the 50-day exponential moving average (EMA).
However, a lack of demand appears to be a huge issue for traders around the world, since we appear to be entering a worldwide recession, which is toxic for oil prices. If the U.S. dollar continues to appreciate, the cycle of suffering will only intensify.
