WTI Crude Oil Prices Test Support – Key Levels to Watch

[embedded content]

Oil & Gas Talking Points:

Crude oil prices will be supported as supply constraints limit losses. Rising energy prices are affecting European politicians as consumers fear higher prices, carbon dioxide shortages (CO2) and cold winters. Inflation, the FOMC economic outlook and the Bank of England decision remain at the forefront of sentiment

A combination of key factors continues to affect the commodities sector as well as oil and gas prices, which have risen over the course of the year.

While both the Federal Reserve and the European Central Bank (ECB) remain pessimistic about the global Covid-19 pandemic, soaring commodity prices have raised concerns that inflation may not be “temporary,” which led to interest rate decisions this week. They are at the forefront when they feel threatened by the world’s two largest economies.

Oil Price Forecast: WTI Crude Oil Prices Test Support – Key Levels to Watch

However, supply bottlenecks have been exacerbated by the disruption of WTI production as oil producers in the Gulf of Mexico work to remedy the damaging effects of Hurricane Ida.

Meanwhile, epidemics and increasing natural disasters have led European politicians to focus on combating climate change and forcing renewable energy producers and suppliers to pay more and lower gas prices every year.

Oil Price Forecast: WTI Crude Oil Prices Test Support – Key Levels to Watch

Source: Refinitiv

US Crude Oil Prices – Key Levels to Watch

After breaking the August low ($ 61.70), a tightening of oil supplies helped crude oil prices rise sharply and allowed cows to temporarily raise prices. However, after the bears hit the resistance wall below the major psychological level of $ 73.00, the bears were able to bring prices back up to the 23.6% Fib level of the August-September move, which is currently supporting at 70.39 USD is held.

With prices above the 50-day moving average (MA), the Commodity Channel Index (CCI) is currently trading below at least 100. While price action in the aforementioned move is still hovering between the aforementioned Fibonacci levels, ongoing supply constraints and economic troubles remain the main catalyst for the move ahead.

US Crude Oil (WTI) Daily Chart

Oil DailyChart

Chart prepared by Tammy Da Costa using TradingView

— Written by Tammy Da Costa, Analyst for DailyFX