WTI crude oil price has been on a bullish run as of late. The commodity’s CFD price rose by over 30% in last week’s trading alone in hopes that the oil price war between Saudi Arabia and Russia would soon come to an end. So far, for this week, WTI crude oil price CFDs is down around 9% as it trades just below the 26.00 handle.
It would seem that investors are bracing themselves for the highly-anticipated meeting between two of the world’s major oil players. If you remember, crude oil price drastically fell in March when Saudi Arabia and Russia abandoned their OPEC+ partnership. Now, it has been confirmed that Russia will be attending the meeting of oil-producing countries to talk about cutting production. Other non-OPEC countries like the US, Canada, and Brazil have also been invited to the March 9 meeting.
Market participants expect that around 10 million barrels of oil would be reduced from daily production. While most do not expect it to be enough to prop up crude oil prices in the long-term, it could offer short term relief.
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WTI Crude Oil Price Outlook
On the 4-hour time frame, it can be seen that WTI crude oil price has spent the last few trading hours in consolidation. Because this follows after a strong rally, a bullish pennant chart pattern has become apparent. This chart pattern is considered as a bullish continuation indicator. A break above yesterday’s highs at 28.02 may effectively invalidate the minor resistance level. It could then mean that WTI crude oil price is on its way to trading higher to 35.60 where it topped on March 11.
On the other hand, a close below yesterday’s low at 25.70 could mean that the bullish pennant is no longer valid. WTI crude oil price could pull back lower to the 50% Fib level (when drawing the Fibonacci retracement tool from the low of March 30 to the high of April 3). This price, around 24.00, also coincides with the 100 SMA.
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