WTI Crude Oil went into this weekend via futures pricing around the $70.975 ratio. On the 2nd of July WTI Crude Oil traded withing sight of $67.000. That lower price actually came within shouting distance of values seen on the 27th of February. And while numerically this is intriguing technically, in actual fact it is significant because the 27th of February was just before the war between Iran, the U.S, Israel and Gulf nations began. Technically this doesn’t appear to be a mere price coincidence.
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Trading Optimism and Questionable Outlooks Because of the Hormuz Strait
And as this weekend comes to an end large players in WTI Crude Oil are faced with anxious thoughts which will not only test their sentiment when the markets open tomorrow, but could deliver swiftly changing dynamics in the Middle East conflict. Having traded near the $75.800 mark this past Wednesday, it appears large players who reacted to new U.S strikes in Iran earlier in that day, grew accustomed to the tension once again creating a whirlwind in the Hormuz Strait.
WTI Crude Oil actually moved lower in a rather polite manner, yes there were a couple of spikes higher after lower values were traversed, but Thursday’s high of nearly $74.500 was certainly lower than high on the previous day. And then going into this weekend, WTI Crude Oil continued its foray downwards, this even as more military action was being threatened by the U.S per their perception that Iran was still acting belligerently in the Hormuz Strait. Market psychology appeared to be leaning into optimistic trading hope that somehow a happy ending would be once again found between Iran and the U.S and they would de-escalate but clearly outlooks now may ready to change again.
Additional Reports of Military Action Taken by U.S Forces as Crude Oil Trading Waits
During the past night the Hormuz Strait did not stay quiet. Reports that Iran fired warning shots in the Hormuz Strait near a cargo ship, and more attacks from the U.S military have been heard. And while this has gone on in the past half day, WTI Crude Oil must wait to open its trading on Monday morning for what is definitely going to be a nervous crowd of energy traders including large players and small speculative retail bettors.
However, tomorrow hopes of calm in the Middle East will be confronted by the reality of the political and military situation. This as the U.S and Iran interact either violently or via a more tranquil method. The price of WTI Crude Oil is bound to be combustible early on Monday, and there is a lot of time left today which could and will affect the sentiment of large traders depending on news developments. At this juncture is would seem to be wise to be anticipating more noise in the Middle East this coming week.
Unpredictability of Iran, the U.S White House Will Cause a Reaction
Yes, we have seen this movie before. The news may sound boring at this point.
- We have heard the Iranians say they will blockade the Hormuz Strait countless times, we have heard President Trump utter threats and then back away and suddenly make it sound as if peace will be found regarding the Iranian situation.
- But the storyline of Iran and the U.S may not have reached a climax quite yet. Other drama appears ready to unfold.
- Conflicting viewpoints regarding what has been agreed upon are causing friction, but large traders seemingly leaned into bearish notions about the price of WTI Crude Oil, but were they wrong?
WTI Crude Oil Price Chart
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 70.050 to 83.000
Two-Month WTI Crude Oil Bearish Trend Hints a Coming Near-Term Reversal Higher
On the 15th and 16th of June WTI Crude Oil was near the $80.000 mark. On the 2nd of June the price of WTI Crude Oil was around $95.000. A technical scale downwards is rather easy to see. Now the question is what WTI Crude Oil will do if – and its seems likely – large players decide they do not like the current conditions between Iran and the U.S and instead of being optimistic, decide to turn negative. Are we about to see a rapid run higher in WTI Crude Oil in the coming days?
If you are betting on upside on Monday morning in WTI Crude Oil you will likely have to get into a long line. Expect a gap higher when trading opens. Traders without open positions for tomorrow’s trading may be grateful, because missing the electric price action may prove a safe place for smaller speculators. While upside initially to open price action in WTI Crude Oil seems a certainty on Monday, what follows will be effected by news developments from two major actors, Iran and the U.S White House that have developed a flair for the dramatic. If military escalation grows this week, prices above $80.000 should not come as a surprise.
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