Crude Oil Heading for $80 After Breaking This Month’s Lows
Crude Oil has broken below $81.50 which was the low from early this month and is now heading for $80. The conflict in Gaza and the issues with Venezuela are not helping buyers either, so it seems like WTI will fall below $80 early next month.
Crude oil opened this month in a volatile manner and it is closing it like that. Following the Middle East tensions, WTI Oil began at $80 in October and surged to $89.90, but failed to achieve the major round mark of $90 and reversed much lower from September’s high of $95 in the third week of October. On the H4 chart, moving averages became resistance, halting the upward moves, and the ground offensive in Gaza have failed to turn the sentiment positive for Oil, mainly due to reasons that the conflict hasn’t spread in the Middle East.
Crude Oil H4 Chart – The Downtrend Has Resumed Since Mid October
There have been other developments for crude Oil, but they have also failed to turn the sentiment around. The US offered Venezuela sanctions relief from sanctions earlier this month in return for fair elections this year. That strategy looks to be unraveling swiftly, as Venezuela’s electoral court said Wednesday that it is suspending opposition primaries, only days after President Nicolas Maduro declared the vote a fraud.
To be honest, the 93% primary vote for Mara Corina Machado on 2.5 million ballots is alarmingly high, and the voting sheets have already been burned. Given Maduro’s conduct, I don’t see how the US sanctions can be lifted for long, especially with such a blatant breach of pledges. Today, WTI crude oil is up 61 cents to $82.92. In order for the bulls to maintain control, the October lows must hold. So far in Q4, the figures haven’t been as tight as predicted, but it’s early and Chinese data is fickle.
US WTI Crude Oil Live Chart
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