Crude Oil Outlook: Oil, Covid-19, Key Levels
Oil Forecast: Talking Points
- Crude oil prices extend gains as vaccines support demand for travel
- US Crude (WTI) testing a key level of resistance, can demand force a break?
- Will increasing covid cases boost demand for safe-haven Dollar?
With the Omicron (latest Covid-19 variant) variant weighing on investor sentiment, a series of technical and fundamental items have continued to impact sentiment for oil and commodities as a whole.
However, with the release of the Pfizer and Biotech announcement suggesting that a third shot will assist with immunity against the latest variant which has resulted in an array of additional measures.
Oil – US Crude (WTI) Price Action
Although factors such as inventories, the reduction of carbon emissions and demand for oil are likely to continue to catalyze with the price action for the foreseeable future, technical inputs suggest that price has been respecting historical levels and may continue to do so in the near-term.
US Crude Oil (WTI) Weekly Chart
Chart prepared by Tammy Da Costa using TradingView
Meanwhile, from a shorter-term perspective, the $70.00 historical level is likely to continue to withstand buying pressure. In addition to that, trendline resistance may stay firm, at least for now.
US Crude Oil (WTI) 4-Hour Chart
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
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