WTI Crude Oil (current price: $49.61)
Crude oil continued to trade in a short-term uptrend this week as the OPEC production cut seems more and more uncertain in the light of the recent announcements by the involved countries. The broad advance in the U.S. Dollar in the past weeks also puts pressure on commodities, while the weakness in global stocks continues to weigh on risk-on assets as well. Oil is trading near the $49 support/resistance level, still way above the rising 200-day MA, despite the correction.
Our assessment: The long-term uptrend seems intact in oil, but the crucial commodity might continue lower if the Federal Reserve remains hawkish and supply issues continue to persist.
