USDX
101.970

0.09%

XAUUSD
1927.97

0.04%

WTI
79.494

2.06%

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1.08671

0.22%

GBPUSD
1.23911

0.11%

USDJPY
129.808

0.30%

USNDAQ100
0.12

1.39%

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WTI: Prices Over-dropped, Wait Patiently for Long

Commodity
Summary:

Oil prices are pushing straight into the price range for the U.S. to replenish SPR stocks, and prices may be stabilizing.

Buy WTI
End Time
CLOSED

72.000

ENTRY PRICE

83.500

TGT PRICE

67.000

SL PRICE

79.494 -1.674 -2.06%

213

Points

Profit

67.000

SL PRICE

72.213

CLOSING

72.000

ENTRY PRICE

83.500

TGT PRICE

Fundamentals

International crude oil futures prices fell on Dec 7th, resulting from a weighing on investors' concerns about the outlook for energy demand due to the large increase in U.S. refined oil inventories. Besides, the latest EIA data showed that U.S. crude oil inventories plummeted more than expected, but refined oil inventories rose sharply.
The specific data suggested that as of the week of December 2nd, the U.S. crude oil inventory posted a decrease of 5.187 million barrels, while it was expected to decrease by 3.305 million barrels and the previous drop of 12.58 million barrels. Gasoline stocks posted an increase of 5.320 million barrels, while it was expected to increase by 2.707 million barrels, and the previous value increased by 2.769 million barrels. Distillate stocks recorded an increase of 6.159 million barrels, while it was expected to increase by 2.208 million barrels and a previous increase of 3.547 million barrels. 
In addition, Russia is considering either implementing fixed-price sales for the country's oil products or specifying a maximum discount for Russian oil relative to international benchmark crude, according to trustable sources. Russian officials explained that Russia's goal is to provide transparent pricing mechanisms to its crude buyers and insist on a market-based price mechanism to offset the impact of the G7 setting oil price caps. 
In general, the current round of crude oil decline is driven by weak demand. Furthermore, the market temporarily performed as a buyer's market, but the current oil price has been forced straight to the Biden administration's plans to replenish strategic reserves of the $67-72 target range. Moreover, there is potential external interference, including OPEC and Russia's production cuts, which will lead to sharp fluctuations in the market, thus chasing short is not recommended. Meanwhile, as the market sentiment has not rebounded, and there is no signal of stopping the decline in crude oil, waiting for a chance to go long is better.

Technical Analysis

Regarding the 1H chart, short-term MACD shows oversold signs and forms a golden cross at the bottom. The bullish signal is overwhelming, indicating that WTI may rebound soon. WTI: Prices Over-dropped, Wait Patiently for Long _1

Trading Recommendations

Trading direction: Long
Entry price: 72.000
Target price: 83.500
Stop loss: 67.000
Support: 72.000/67.000
Resistance: 75.500/83.500
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or signal, or any other product is suitable for you based on your investment objectives and financial situation.

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Focus on

COPPER, WTI, XAUUSD

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