WTI Crude Oil, like all other assets, will deal with extremely thin holiday trading this week. Speculators who participate in the commodity this week need to understand that the lower than-normal volumes in WTI Crude Oil could generate very quiet conditions, which then can be sparked by sudden storms in value causing volatility that can knock traders out of their positions with swift losses.

WTI Crude Oil went into the weekend near the 73.500 USD mark, and the ability to sustain prices above the 73.000 may be seen as important. The low for the commodity last week occurred on Monday when WTI tested the 71.000 USD. The weaker USD in Forex may be helping create some support for Crude Oil, but when the commodity touched the 75.370 ratio on Wednesday as the high for the week, it likely occurred upon speculative buying as shipping news from the Red Sea and Arabian Sea made headlines.

Traders wagering this week in WTI Crude Oil must deal with a combination of lower trading volumes and the possibility of nervous conditions caused by the Houthi rebels of Yemen. If troubles persist in international waters in the Red and Arabian Seas, this could not only give WTI Crude Oil some price support this week but open the door to speculative buying if loud news developments from the Middle East occur.

• Traders will need to use risk management attentively this week, as they deal with WTI Crude Oil light market conditions because of the Christmas holiday.
• Traders who want to sell WTI Crude Oil, because they feel technical highs will ignite reversals, cannot be blamed, but they should monitor news from the Middle East regarding shipping.

Supply of Crude Oil remains abundant via several global suppliers. This knowledge continues to create fundamental headwinds for WTI Crude Oil. Speculators in the energy sector are also dealing with economic concerns coming from China, and U.S GDP numbers which showed growth slowing down last week.

While holiday trading volumes will certainly factor into WTI Crude Oil this week and global risk concerns are contemplated, the notion the commodity is trading near highs and may face technical reversals could be tempting. However, traders should be prepared for range trading in WTI Crude Oil this week if ‘news’ regarding shipping in the Middle East stays relatively calm. Inexperienced traders need to understand that larger players in WTI Crude Oil are accustomed to political intrigue and loud headline news from the Middle East.

The speculative price range for WTI Crude Oil is 71.000 to 77.000 USD.

When WTI Crude Oil touched the 71.000 ratio early last week there was an immediate reaction and strong buying erupted in the commodity. The price of WTI Crude Oil jumped from its lows to nearly 74.600 within a handful of hours. The fluctuation in prices is a reminder of what can occur if news develops which speculators believe can influence the energy market. The fact that trading volumes will be low this week opens the door to the potential of sudden gyrations.

Participating in commodities over the holidays can be intriguing and attractive because of the relative calm that often is produced. Yet the opportunity for a large player to step into the WTI Crude Oil market and have a dynamic impact is dangerous for small traders. The price of WTI Crude Oil is likely to range trade this week, but if sudden news is generated from the seas of the Middle East, this could play a role in volatility. Traders should use strict price entry orders, and this should be followed up with stop loss and take profit orders being placed too.

Ready to trade the WTI/USD exchange rate? Here’s a list of some of the best Oil trading platforms to check out.