CRUDE OIL OUTLOOK:
- Crude oil prices surge amid provide scarcity regardless of OPEC+ output enhance
- US inventories on the lowest in two years on provide chain woes, Ida influence
- WTI engaged on fifth day of positive factors, eyeing a path to 2021 excessive close to $77/bbl
Crude oil prices stormed greater initially of the buying and selling week, with the WTI benchmark hitting a two-month excessive and monitoring to situation a fifth consecutive day on the upside. Shortages seem like driving the rally amid gaps in provide chains and lingering output disruptions following Hurricane Ida.
US inventories have dropped to the bottom since mid-October 2018 even because the variety of lively rigs rose to the best in 17 months whereas the OPEC+ group of main producers have steadily eased manufacturing caps.Transport prices have jumped to a 13-year excessive.
A quiet financial calendar affords few roadblocks to derail momentum Monday. Later within the week, stock updates from API (Tuesday) and the DOE (Wednesday) are due. Month-to-month reviews outlining market circumstances and updating provide/demand projections from OPEC (Tuesday) and the EIA (Thursday) are additionally on faucet.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil costs are testing above swing-high resistance at 74.23, with affirmation on a each day closing foundation placing July’s peak just under the $77/bbl determine into focus. A little bit of friction at 75.52 – a minor inflection level – could also be seen alongside the way in which.
Neutralizing upward momentum most likely calls for a reversal that re-establishes a foothold beneath help at 72.17. Which will mark a break of rising pattern help guiding costs upward since late August. Probing beneath the $70/bbl mark may comply with thereafter.
Crude oil worth chart created utilizing TradingView
CRUDE OIL TRADING RESOURCES
— Written by Ilya Spivak, Head Strategist, APAC for DailyFX
To contact Ilya, use the feedback part beneath or @IlyaSpivak on Twitter