WTI crude oil prices print mild gains around $85.30 during Monday’s Asian session, after declining for the last three consecutive weeks, as traders prepare for the Fed’s monetary policy outcome. Also keeping the black gold positive are the price-positive headlines from China, as well as concerning the US hurricane Fiona. Furthermore, comments from US President Joe Biden also seemed to have favored oil prices amid a sluggish session.

National Hurricane Center (NHC) recently updated that the center of hurricane Fiona will move near the Northern coast of the Dominican Republic tonight. The update shared by Reuters also mentioned, “Hurricane Fiona now moving just west of Puerto Rico and heading for the eastern Dominican Republic, causing catastrophic flooding.

On the oil front, oil prices have been established below $85.00 and are expecting more weakness as Energy Information Administration (EIA) is continuously displaying a build-up of oil inventories. This indicates declining oil demand in the US and soaring odds for a Fed’s bumper rate hike will trim demand further.

The WTI market can display a slight potential of moving hawkish towards the trend line on four hour and daily time frame in order to correct its oversold conditions. The EMA-50 and EMA-200 can also be seen providing a resistance zone near the orderblock and restricts to bulls from breaking above 91.20. 

On one hourly timeframe the oil market is providing us with a complex expanding corrective structure and maintaining a steady posture above $84.0. We can expect a temporary push to the upside followed by a sharp dip to complete its higher degree of correction to the upside trend before it starts moving hawkish.  

WTI Dominated by Fundamentals.

Sep 19 2022