WTI Crude Oil (current price: 41.23)
Oil recovered almost all of its early losses yesterday and it finished the session close to unchanged after being down by as much as 5% in the morning. WTI Crude is slightly lower this morning, but it’s still way above the crucial $40 level, at around $41. Risk assets are looking bullish this morning, but investor sentiment can change quickly if oil is to resume its decline. Any news about a possible background deal from the producers, mainly Saudi Arabia and Russia, could change the landscape of energy markets here.
Our assessment: Oil needs to stay above the $40 support zone to continue last week’s uptrend after exiting the short-term trend channel. A pullback is expected today after the intraday reversal on Monday.
