Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Crude Oil Outlook: Oil, Covid-19, Key Levels

Crude Oil Outlook: Oil, Covid-19, Key Levels

What's on this page

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?
Top Trading Opportunities in this Quarter
Top Trading Opportunities in this Quarter
Recommended by Tammy Da Costa
Discover our analyst’s Q4 Oil forecasts
Get My Guide

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

After pricing in the fundamental factors which remain at the forefront of risk sentiment, oil prices have retraced back towards a key Fibonacci level of a historical move (2001 – 2008).

Understanding the Core Fundamentals of Oil Trading
Understanding the Core Fundamentals of Oil Trading
Recommended by Tammy Da Costa
What drives Oil Prices?
Get My Guide

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.

How to Trade Oil: Crude Oil Trading Strategies & Tips

US Crude Oil (WTI) 4-Hour Chart

Oil - US Crude Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 19% -30% 0%
Weekly 19% -28% 1%
Learn how to use Sentiment in your trading strategy
Get My Guide

--- Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES