Oil prices could attempt a short-term rebound
In terms of technical analysis, the outlook for oil prices has been bearish since falling below its 200-session moving average this summer.
The WTI barrel price seems to be moving in a range between around $92 and $75 since the beginning of the fall. Currently at the bottom of it, the risk/reward ratio is technically back in favor of the buys, but it will surely be better to wait for a bounce above the pivot at $81 to position yourself for the purchase and aim for a return in top of the range.
An exit from the top of the range seems very unlikely given the fundamentals, but if it did, it would suggest a bullish reversal to at least $110.
In the event of an exit from the bottom of the range, which seems very likely in the event of a recession, a correction to the bottom of December 2021 at around $61.50 seems possible.