Crude Oil Prices: Mapping the Path to $60 and Back to 40s
Oil prices are wavering today as traders wait for additional catalysts. The price of Brent crude is down by 0.38% while that of the West Texas Intermediate (WTI) is down by 0.30%. The two are trading at $51.30 and $48.20, respectively.
What happened: The lack of action in crude oil price market is mostly because of the overall pessimism about the market today. Indeed, most assets, including stocks and precious metals are also in the red. Therefore, this is evidence that investors are waiting for a catalyst that will push the price in either direction.
What next? The only oil-related data that are scheduled today is oil rig count by Baker Hughes. The numbers, which will come in at 18:00 GMT will show whether US oil and Canadian oil producers increased or reduced their rigs. In general, experts believe that the number of active rigs will continue to increase due to the recent oil prices movement.
Crude oil prices technical outlook
Brent oil prices are in a strong trend, as shown in the daily chart below. They are still above the short and long-term moving averages. Most importantly, they have crossed the important 61.8% Fibonacci retracement level. Therefore, in the next few weeks, I suspect that the price will continue rising as bulls aim for the 78.6% retracement level at $60. After that, the price will possibly pull back and settle below $50.