- Western Texas Intermediate (WTI) is expected to end the week with losses of 0.55%.
- Chinese demand and a weak US dollar supported oil prices.
- WTI buyers unable to break the 50-day EMA keep the product biased lower.
WTI is poised to end Friday’s trading session nearly flat as Wall Street ended the day with strong gains on hopes of a Fed pivot, as the wires mentioned that officials Fed officials were struggling to slow the pace of rate hikes after the November meeting. As of this writing, WTI is trading at $85.17 a barrel, up a low of 0.19%.
WTI pared earlier losses on US dollar weakness and Chinese demand
As the Fed would reduce its aggressiveness, the greenback fell, a tailwind for the US dollar-denominated commodity. US Treasury yields retraced their earlier gains, undermining the dollar which, as shown by its US dollar index, fell 0.88%, down to 111.865, after hitting a year-to-date high. of 113,942.
Apart from that, oil prices rose in choppy trade due to the likelihood of more robust demand from China. News that the country may ease quarantine restrictions for overseas visitors from 10 to 7 days has spurred a spike in oil prices.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies have decided to cut oil production amid a weakened global economic outlook, threatening to tip the biggest economies into recession. OPEC+ drew 2 million barrels a day, in a decision widely criticized by the White House, which reacted negatively to the decision.
WTI Price Prediction
The Western Texas Intermediate (WTI) has recovered some ground during the day and is clinging to the 20-day exponential moving average (EMA) at $85.13 PB in dry volume. During the week, the US crude oil benchmark was unable to trade above its 50-day EMA at $86.80, meaning risks remain tilted to the downside.
Therefore, the first support for WTI would be the October 18 daily low at $82.10, followed by the September 30 low at $79.16, then a retest of the low since the beginning of the month. year at $76.28.