Fundamental analysis of WTI

US benchmark WTI crude oil continues to trade sideways with moderate volatility at 86.50. 
As trading in Asia began on Monday, oil prices declined, mainly due to concerns about the economic situation in China. However, this decline in prices has eased. This recovery has been driven by a decline in oil supplies, a direct result of the joint decision by Russia and Saudi Arabia to extend a voluntary supply cut of 1.3 million barrels per day until the end of the year. In addition, the strengthening of the US dollar, growing for the eighth week in a row, is weakening investor interest in commodities. Despite the current situation, the oil market has recently seen a general upward trend. In particular, the oil price has reached its highest value since November last year. Such positive dynamics is partly explained by expectations related to the publication of the next monthly reports of the main energy organizations: International Energy Agency and Organization of the Petroleum Exporting Countries. According to market analysts, any signs of significant demand for oil in these reports may lead to price growth. 
As for operations in the US, the oil industry has seen the first platforms since June. That said, the total number of platforms is still 17% below last year's statistics. WTI crude oil prices appear to be in a new price zone, which is expected to range between 85.00 -95.50. Possible headwinds, such as demand uncertainty in key regions such as China and Europe, could prevent prices from rising significantly. 
The current dynamics have oil prices in overbought territory for the sixth consecutive day, after rising to nine-month highs on the previous Friday. These spikes can be attributed to factors such as rising diesel futures prices in the US and supply issues from major oil producers. Currently, market sentiment is largely supply-driven, and the OPEC+ strategy is clearly aimed at keeping the market tight throughout the winter. 
Taking all factors into account, the near-term outlook for oil prices leans towards cautious optimism. Current market dynamics as well as external factors such as the complex relationship between Venezuela and China will have a significant impact on trading in the coming days.
Technical analysis and scenarios:

The Bollinger Bands upper band is at 87.35, the middle band is at 86.55 and the lower band is at 85.75. The indicator is directed horizontally and the price range is narrowing. The price is correcting to the middle band. The horizontal direction and narrowing nature of the Bollinger Bands indicate a decrease in volatility and hint at the possibility of a significant move in the near future.
Main scenario (BUY)
Recommended entry level: 87.00.
Take Profit: 87.50.
Stop loss: 86.75.
Alternative scenario (SELL)
Recommended entry level: 86.00.
Take Profit: 85.00.
Stop loss: 86.50.