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Crude oil price volatility explodes on Omicron News ahead of OPEC +. Where is WTI?

Crude Oil, US Dollar, OPEC +, Omicron, WHO, WTI-Issues

  • Crude oil oil price It became ballistic as volatility rocked the market
  • The government’s release of strategic stockpiles has been questioned
  • There may not be much discussion at OPEC + meetings. Will WTI Find a Base???

crude oil It fell more than 13% on Friday after the World Health Organization (WHO) examined a new strain of Covid-19 named “Omicron.” WTI rose 5% in Asian trade as more information is gradually being revealed.

According to early case reports from southern Africa, this strain may be more contagious than previous variants, but its health effects may not be as serious. This has not yet been formally confirmed, but for now it is sufficient to suspend negative emotions.

After crude oil hit a few years high in October, many countries have considered strategic stockpiling as a way to mitigate rising energy costs. Once the dust has settled and the Omicron results are clear, these spares may not be needed.

On the other side of the coin, OPEC + will meet on Thursday to discuss the possibility of lowering output to counter the release of. oil According to a major US-led government. OPEC + may not need to change their current stance if fiscal authorities are rethinking their position.

At the risk-off event on Friday, volatility surged dramatically in many asset classes.

The uncertainties about the impact of Omicron are so high that the market will probably stay on the edge and fresh news can cause further volatility.

Crude oil technical analysis

Crude oil recently broke down at 74.76 and 73.14 through previous support. These levels can now provide resistance. Further resistance can be at previous highs of 79.33, 81.81, 84.97 or 85.41.

Short term 10 days and 21 days Simple Moving Average (SMA) There is a negative gradient that accelerates as you move down. However, 55, 100, 200, and 260 days medium- to long-term SMAs maintain a positive gradient. This may indicate that short-term momentum is bearish, but long-term momentum probably remains bullish.

Prices have fallen below the 21-day SMA-based lower limit Bollinger band However, returning to the inside of this band may indicate a bearish pause. Increased volatility can be observed in the width of the Bollinger Bands.

Support could be previous lows of 67.12 and 61.74, or a 260-day SMA of 65.17 now.

chart NSRating on TradingView

— Written by Daniel McCarthy, strategist at DailyFX.com.

To contact Daniel, use the comments section below or @DanMcCathyFX On twitter



Crude oil price volatility explodes on Omicron News ahead of OPEC +. Where is WTI?

Source link Crude oil price volatility explodes on Omicron News ahead of OPEC +. Where is WTI?

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