WTI Crude Oil Price Trends and Investment Insights: Geopolitical Risks and Chart Analysis

WTI Daily Chart

Crude oil prices rose temporarily after President Trump warned of possible tariffs on imports from Mexico and Canada. However, WTI crude oil is projected to decline by 1.69% for the week. On a monthly basis, WTI is up by 2.3%, supported by geopolitical risks and supply concerns.
Particularly, sanctions on Russia and pressure on Iran add a geopolitical risk premium to oil prices. The upcoming OPEC+ meeting is anticipated to discuss production adjustments. Additionally, strategic petroleum reserve replenishments could boost demand, contributing to potential price increases despite the current volatility.

Future Outlook and Predictions

1. Chart Analysis and Market Trends
Looking at the attached WTI crude oil daily chart, prices have recently entered a downward trend after a brief rally. However, prices seem to find support at the long-term moving average, indicating potential for stabilization or even recovery in the medium term. This suggests that geopolitical risks and supply-demand dynamics are acting as a buffer against sharp declines.

2. Impact of Geopolitical Risks and Supply Concerns
Sanctions on Russian oil, pressure on Iran, and potential U.S. tariffs on Mexico and Canada have heightened supply-side risks. If tariffs are imposed on crude oil imports, further price increases could be expected due to supply disruptions.

3. Influence of the Upcoming OPEC+ Meeting
The OPEC+ meeting on February 3 is expected to address U.S. production plans and potential supply adjustments. Decisions made during this meeting could significantly influence market dynamics and crude oil prices.

4. Investor Sentiment and Market Trends
While the market remains volatile, signs of improving supply-demand balance—such as strategic petroleum reserve replenishments and steady interest rates by the Federal Reserve—indicate the possibility of a medium-to-long-term price increase.

Explanation for Beginners

If you’re considering investing in crude oil, here are some actionable tips:

✅ What should you do?

1. Start small
   Crude oil prices can fluctuate in the short term. Begin with small investments to minimize exposure and build confidence.
2. Focus on the mid-to-long term
   Given ongoing geopolitical risks and supply uncertainties, crude oil prices are likely to rise in the long run. Consider taking long-term buy positions in WTI crude oil.
3. Stay informed and monitor trends
   Keep an eye on OPEC+ meetings and U.S. policy announcements, as these can significantly impact prices. Regularly review charts to identify the best buying opportunities.

Crude oil investment offers opportunities for beginners too. Take your time, stay informed, and invest with confidence!