Set your predictions for where Crude Oil is heading this week. Everything is on the table.
The past week’s trading of Oil was definitely affected by the infamous Ever Given ship obstructing the Suez Canal. Crude indices swung back up in price once the ship was dislodged from the canal’s bank. Passage through the channel is possible again, and the 350 boats moving US$9 billion worth of global trade per day have resumed their journeys.
While Oil has had an upswing, volatility is still very much present in the market. With the Evergreen difficulty receding, the market moves its attention to the upcoming OPEC+ meeting this Thursday.
OPEC members are expected to keep oil supply at its current low level or even lower production. The member states are anticipating lower oil demand from Europe as a fourth wave sweeps through the continent. Saudi Arabia will be looking to flex its membership muscle and restrict oil supply and possibly pump the price up a little.
The 1 Hour chart on WTI Crude shows prices being well supported by the 38.2% fib level at $61.29, with near term resistance at $62 a barrel. With the OPEC meeting looming, investors could see an opportunity to target the 50% mean reversion at $62.539.
As of writing, WTI crude is sitting at US$61.53, Brent Crude is US$64.96, and the OPEC Basket is US$62.56.