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Crude Oil Outlook:Will Omicron Continue to Hinder Oil Prices?

Crude Oil Outlook:Will Omicron Continue to Hinder Oil Prices?

Tammy Da Costa, Analyst

Crude Oil, WTI, Brent – Talking Points

  • Crude oil prices continue to face pressure from the spread of the Omicron
  • US Crude (WTI) breaks at the key psychological level of $70.00
  • Key levels of support and resistance continue to hold bulls and bears and bears at bay

Oil – US Crude (WTI) Price Action

Oil Prices have recently dwindled as the Omicron variant continues to affect demand.

As global lockdowns continue to weigh on risk sentiment, rising geopolitical tensions have forced price action into a range, between key technical levels of historical moves.

If bulls are able to push through the key level of resistance at $72, a breakout towards $80.00 may be in the cards. However, fears of higher wage inflation from the US could increase hawkish Fed monetary policy expectations. That may hurt WTI, and increased selling pressure could result in a resumption of the bear trend and a possible retest of psychological support at $70.00. Still, it seems that in the near-term, demand is poised to outstrip supply.

US Crude Oil (WTI) Daily Chart

Crude Oil Outlook:Will Omicron Continue to Hinder Oil Prices?

Chart prepared by Tammy Da Costa using TradingView

--- 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.

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