Oil prices were mixed on Friday, influenced by various global factors. U.S. West Texas Intermediate (WTI) and Brent crude, the international benchmark, experienced a decline. This market trend follows a relatively stable week, contrasting with the 3% rise observed in the previous week.
At 10:21 GMT, Light Crude Oil Futures are trading $81.08, up $0.01 or +0.01%.
Several factors contributed to the fluctuation of oil prices:
Considering these factors, the short-term outlook for oil markets is cautiously bearish. The potential Gaza ceasefire could stabilize regional tensions, reducing risk premiums in oil prices. However, weakened U.S. gasoline demand, coupled with a stronger dollar, presents a bearish tilt. Additionally, global economic uncertainties and mixed signals from inventory data further cloud the immediate forecast. Traders should remain vigilant to geopolitical developments and economic indicators, which could rapidly alter market conditions.
Light crude oil futures are putting in a mixed performance on Friday as profit-takers continue to erode recent gains. The short-term trend is up, but the market remains vulnerable to a near-term correction. The primary downside target is the retracement zone at $79.725 to $78.92.
Since the intermediate and long-term trends are decisively up, buyers are likely to step in on a pullback into his zone since it represents value.
On the upside, a trade through $83.12 will signal a resumption of the uptrend.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.