Crude Oil is a major commodity in the world as it is used for production and logistics of good and services globally. The price of crude oil was at a high in 2022 at $130.75. Afterwards, price began to fall, and this fall continued until price reached $64 in May 2023. The $64 price level makes it a 2-year low.
The second half of this year seems to be good for the bulls as price rallied from the support level in May 2023 to $94 in September 2023. A resistance level has been formed at this $94 mark. On the daily, weekly and monthly charts, RSI has shown that price has been overbought. The bearish turn might push price lower and price might reach a new 2-year low. If the crude oil price falls below the $64 price level this quarter, then all gains for the year is lost. Chances are that this fall is a result of the ongoing wars. But we’ll find out eventually.
Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get commodities in your portfolio? Schedule a meeting with us here.