WTI Crude Oil 2024: Range-Bound Trends and Key Levels

12月2日

Big Picture:

WTI Crude Oil Futures prices have been largely range-bound for most of 2024 with yearly low of 62.54 and high at 81.75 defining the trading range. Analyzing the Composite Volume Profile since January 2022 reveals that 2024’s price action has been contained within the Composite Value Area High (CVAH) at $79.91 and Composite Value Area Low (CVAL) at $63.57

We further note that while there are many bearish and bullish analyses for crude oil floating from different market analysts, market auction theory and charts point towards further range bound price action for December 2024 and foreseeable 2025 ahead until proven otherwise.

OPEC+ meeting is scheduled to take place on December 5th, 2024. It was previously planned to take place on Dec 1st, 2024. The change accommodates the Kuwait Summit, with Saudi Arabia and its allies expected to discuss production quotas—a decision that could influence market dynamics.

Additionally, U.S. crude oil production in 2024 has reached record-high levels.

Geopolitical issues have not had a major impact on Crude prices as prices remain range bound. Intraday volatility remains amidst geopolitical uncertainty.

WTI Crude Oil Key Levels:

CVAH: 79.91
CVAL: 63.57
2024 Yearly Mid: 72.15
2024 Yearly Lo: 62.54
2024 CVAH: 75.60
2024 CVAL: 66.97

Market Scenarios:

• Short Term Resistance (2024 Mid and CVAH): Price movements toward the upper range (CVAH at $79.91 or $75.60) could signal buyer exhaustion, with limited upside momentum expected.
  
• Short Term Support (CVAL and Yearly Low): Movements toward lower levels (CVAL at $63.57 or $66.97) may indicate seller exhaustion, preventing a significant breakdown.
  

As crude oil remains range-bound, traders should monitor these key levels and the OPEC+ meeting outcomes for potential catalysts. Until then, the market appears set to maintain its current trading range.

Disclaimer: The views expressed are personal opinions and should not be interpreted as financial advice. Derivatives involve a substantial risk of loss and are not suitable for all investors.