WTI Crude Oil (current price: $50.41)
Oil has been holding up well over the crucial $50 level following the strong run-up after the OPEC’s production cut decision, and the commodity is consolidating below the highs near $52, in the face of the rallying Dollar. The short-term correction might still dominate this week’s price action, but all eyes will be on the level of U.S. Inventories, as the reaction of the American producers remains an important question. The FED’s meeting next month could also affect the trend in oil, as a rate hike would probably weigh on the price of all commodities.
Our assessment: Oil is trading well above the 200-day MA, in a strong short-term uptrend, although the next up leg in the trend is not confirmed, until the commodity rises above its prior highs.
