HomeContributorsTechnical AnalysisWTI Crude – How Big a Correction Will We See?

WTI Crude – How Big a Correction Will We See?

Risk appetite hits oil prices

Oil prices are not having much fun in the current risk environment which shouldn’t come as much of a surprise considering global growth fears and their impact on risk are intrinsically linked to future oil demand.

It’s one of the often more overlooked drivers of oil prices but the correlation is clear. Oil has been on a slide since Trump claimed to have called OPEC regarding oil prices, which came at a time when the market was already looking rather stretched to the upside.

We’ve seen a bit of a corrective move since then – just shy of 10% – but that may increase. We’re currently trading at a very interesting level – around $69-70 in Brent and $60-61 in WTI – a break of which could signal more pain to come. Given the recent shift in risk appetite, this is perfectly feasible.

MarketPulse
MarketPulsehttps://www.marketpulse.com/
MarketPulse is a forex, commodities, and global indices research, analysis, and news site providing timely and accurate information on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors. This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Featured Analysis

Learn Forex Trading