Oil prices may attempt a short-term recovery
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 appears to be moving in a range between around $92 and $75 since the beginning of autumn. Currently at the bottom of it, the risk/reward ratio is technically back in favor of the buys, but it will definitely be better to wait for a bounce above the $81 pivot to position yourself for the buy and aim for a returns at the top of the range.
An exit from the top of the range seems highly 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 December 2021 bottom of around $61.50 seems possible.