WTI crude oil sold off towards the latter part of the week but this seems to be a mere correction from the longer-term climb. Price is closing in on the ascending trend line visible on the 4-hour and daily time frames and a bounce off the $49 per barrel level could take place.

However, the 100 SMA is below the longer-term 200 SMA so the path of least resistance might be to the downside. This means that a break below the trend line support is a possibility and that these moving averages could hold as nearby inflection points.

Stochastic is turning lower from the overbought area to signal a pickup in bearish momentum, but RSI is pulling up from the oversold region to indicate that buyers are getting the upper hand.

Commodities have been reeling from the prospect of another Fed rate hike as this would dampen business and consumer activity all over the globe. The prospects of another hike from the Bank of Canada and one from the Bank of England are also in the cards.

However, geopolitical risk remains in play, particularly stemming from the situation in Catalonia. Even New Zealand is in political limbo as its rival parties are still trying to secure majority in parliament. In the UK, Brexit issues are also weighing on sentiment and business conditions.

Crude oil could take its cue from inventory levels once more and might draw support from any confirmation that the OPEC will extend its output deal. There has been support from Russia when it comes to keeping a lid on production until much later next year as well.

The latest report from the US did show a surprise decline in stockpiles but traders are paying more attention to export levels as the rising figure could still keep a global glut in play. Export levels hit a record 2 million barrels in the US and are expected to keep climbing.