Market Analysis: Oil Price Stabilizes Near Year's Highs

<img src="https://fxopen.com/blog/en/content/images/2023/09/crude.jpg" alt="Market Analysis: Oil Price Stabilizes Near Year's Highs" /><p>Last week, the Russian Federation and Saudi Arabia confirmed plans to reduce production by the end of the year, which contributed to an increase in oil prices.</p><p>At the beginning of this week, the WTI price stabilized in the range of 85.50 – 87.50. Will the upward trend continue, which will benefit oil producers?</p><p>On Tuesday morning, the price is within the triangle formed from the median line of the ascending channel (shown in blue) and the level of 87.50. A breakout of this triangle can occur in both directions.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/09/121.png" alt="Market Analysis: Oil Price Stabilizes Near Year's Highs" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/09/121.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/09/121.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/09/121.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/09/121.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Bullish arguments:<br>&#x2192; The price is within the ascending channels, both short-term (built on the 1h and 4h charts) and long-term (built on the daily chart).<br>&#x2192; A series of rising lows is forming on the chart, indicating that demand is active.<br>&#x2192; Technically, the market may be supported by the level of 85.50, which previously served as resistance.<br>&#x2192; Oil supplies may be disrupted due to various storms. For example, in eastern Libya, 4 ports were closed due to flooding and a storm, which killed about 2,000 people.</p><p>Bearish arguments:<br>&#x2192; News about economic slowdown in various regions (China, Europe) should weaken demand.<br>&#x2192; On September 11, the price of oil renewed its multi-month high, but retreated very quickly. The behavior was similar to a bull trap &#x2014; a sign of a weak market that could be a harbinger of downward momentum.<br>&#x2192; High oil prices are unprofitable for governments of countries (including the United States) struggling with high inflation.</p><p>Tomorrow, at 11:00 GMT+3, the publication of a monthly report on oil prices from the International Energy Agency is scheduled, which could greatly affect the current exchange rate and disrupt the consolidation triangle that is currently in effect.</p>