The global stock market remains at the receiving end after the conflict in the Middle East between Iran, Israel, and Palestine while the commodity market is benefitting from the turmoil. Commodities like copper, silver, gold, and even the US dollar are surging in price amid the escalating tensions in the region. Crude oil prices reached the 83.50 mark on Wednesday and are trading sideways in the charts in the commodity market.
Also Read: US Dollar Will Remain ‘Stronger for Longer’, Says Goldman Sachs
The WTI index, which measures the Crude oil performance is a critical indicator that estimates the global economic health. The latest movements in the Brent Crude oil highlight that the overall atmosphere looks bleak in the commodity market. The prices of Crude oil dipped by nearly 20% since 2022 and could further head south, according to a research from Invezz.
Also Read: Copper Is the New Gold: Commodity Investors Flock to It for Profits
Commodity Market: A 10% Dip on the Cards For Crude Oil
The strengthening of the US dollar and gold is making it harder for crude oil to surge in the commodity markets. In addition, the flow of oil has barely been disrupted despite the ongoing conflict in the oil-rich Middle Eastern region. The development puts WTI in a bearish position attracting little to no buying pressure from commodity investors.
Also Read: Central Banks Accumulating Gold Reaches Historic Levels
The price of Crude oil is forecasted to dip around the $80.30 mark next. If it fails to hold on to its resistance level, it might slip towards the $76.50 price range. Therefore, investing in WTI currently is concerning as the markets are not in favor of a price rally.
“Crude oil is currently showing extreme weakness, making it inadvisable to initiate any bullish positions. If the price breaks below the $80.30 support level, the next support level can be found near $76.50,” predicted Invezz analyst Ritesh A.
In conclusion, investors who want to make short-term profits in Crude oil must steer away from WTI. The commodity market is attracting bullish sentiments and it is wise to invest in copper, silver, and gold.