Crude Oil tests the low side on Friday, WTI drops below $72 per barrel
- Crude Oil markets are heading lower to close out the trading week.
- WTI is testing into the low end, shedding the $72 handle.
- US Crude oil is rebounding from a mid-week slump into $68.
West Texas Intermediate (WTI) Crude Oil bids are shifting into the low side on Friday, testing into the red with an afternoon plunge into $70.65 before recovering to just below $72.00.
Crude Oil markets continue to get knocked back and bullish momentum gets tangled up at familiar technical points. This week’s risk bid, sparked by a US Federal Reserve (Fed) admitting they’re likely looking at rate cuts next year, could only muscle WTI back into the week’s opening bids.
Topside gains remain limited as global oil demand continues to decline faster than the Organization of the Petroleum Exporting Countries (OPEC) can clamp down on production. OPEC has announced additional supply constraints through the first quarter of 2024, but energy traders remain skeptical that OPEC can successfully choke down oil production to meet waffling demand.
OPEC currently cannot force its member states to adhere to self-imposed oil pumping caps, nor are there any mechanisms in place that allow OPEC to punish member states that flaunt barrel exporting quotas.
WTI Technical Outlook
WTI is holding steady near the week’s opening bids near $71.80, but bullish momentum sees bids capped to recoveries after WTI dipped into a five-month low at $67.97 on Wednesday.
US Crude Oil has rebounded nearly six percent from the week’s low bids, but is still down nearly ten percent from late November’s peaks at $79.62, and has shed over 23% from high-end bids just shy of $94.00 back in September.
WTI Daily Chart
WTI Technical Levels
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
