Traders Remain Cautious Amid Oil Price Volatility

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Traders Remain Cautious Amid Oil Price Volatility
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Caution remains the keyword for oil traders this week as supply and demand dynamics play out.

After facing declines for three straight sessions, October West Texas Intermediate crude oil prices rebounded on Thursday. However, despite the greenback weakening and China's central bank pushing for economic recovery, the market is still poised to finish lower for the week. Key indicators reveal oil's volatile trajectory this week, impacted by multiple global factors.

The intermediate range is $95.40 to $64.42. The market is currently facing a challenge at its retracement zone at $79.91 to $83.57. A sustained move over the upper level at $83.57 will indicate the buying is getting stronger. A break back under $79.91 won’t change the trend, but it will be a sign of weakness, probably linked to profit-taking or demand concerns.

In the immediate future, oil is likely to hover around the key 50% level of $80, with numerous macroeconomic risks in play. China's next steps, the U.S.'s inventory dynamics, and OPEC+ decisions are paramount in shaping the short-term trajectory of oil prices. Should lower demand fears in the US and China increase then look for the market to trend lower under the 50% level at $79.91. This would open the door for a possible retracement into $74.29 to $71.96.

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OilandEnergy /  🏆 34. in UK

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