WTI Crude Oil Price Shows Bullish Trend Ahead of OPEC Meeting

FXOpen

As the chart indicates, on Monday, the price of WTI crude oil rose by approximately 1%.

Reuters reports that the bullish sentiment is driven by:
→ the upcoming OPEC+ meeting scheduled for 2 June;
→ expectations of high fuel demand with the start of the summer driving season and holiday season in the US.

Conducting a technical analysis of WTI crude oil on 10 May, we drew an ascending channel in blue and suggested a scenario of continued price growth within this channel.

Since then:
→ the price formed a low on 15 May at the level of 76.35, but quickly recovered from it. Thus, the bears' attempt to break the low of 8 May at the level of 76.68 quickly failed. In other words, there was a false breakout of the 8 May low.
→ A similar pattern occurred on 24 May – the price dropped below the 15 May low of 76.35, but quickly recovered.

Two false bearish breakouts are a bullish sign. And the strong behaviour of WTI crude oil prices on Monday confirms this.

Analysing the XTI/USD chart today, it is important to note that:
→ the price movement in April-May forms a descending channel (shown in red);
→ this decline since 5 April may be a correction within the larger ascending blue channel;
→ the price quickly returned to the blue channel, briefly dipping below its lower boundary;
→ the price is near the upper boundary of the descending channel.

Thus, conditions are being created for the end of the corrective movement. The bears' inability to hold the WTI oil price at new lows may be used by the bulls to resume the upward trend. It is also possible that news related to the OPEC+ meeting will contribute to this development.

Start trading commodity CFDs with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Commodity CFD Trading with FXOpen

Commodity CFD Trading with FXOpen

  • Trade with tight spreads and low commissions
  • Choose from 4 trading platforms: MT4, MT5, TradingView, or TickTrader
  • Experience ECN technology for deep liquidity and light-speed trade execution
Learn more

Latest articles

Commodities

Analysis of XAU/USD: Gold Price Rises by 5% in a Week

As shown in the XAU/USD chart, last Thursday, the price of gold dropped below $2,540. Today, however, the precious metal has surged above $2,660 per ounce.

The more than 5% weekly increase was driven by a new

Shares

Nvidia (NVDA) Stock Drops Following Earnings Report

On 13 November, we analysed Nvidia’s (NVDA) price chart and noted:
→ The continuation of a long-term upward channel (highlighted in blue).
→ A consolidation below the psychological $150 level, forming a narrowing triangle along the Quater Line, which divides the

Analytical AVAX Price Forecasts for 2024, 2025-2030, and Beyond
Trader’s Tools

Analytical AVAX Price Forecasts for 2024, 2025-2030, and Beyond


Avalanche (AVAX) has emerged as a strong layer-1 blockchain with unique capabilities in scalability, speed, and DeFi applications. This article explores AVAX’s potential price movements from 2024 through 2030 and beyond, providing a detailed outlook based on market developments,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.