News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Heads Up:🇹🇭 Balance of Trade (SEP) due at 03:30 GMT (15min) Expected: $-0.8B Previous: $-1.22B https://www.dailyfx.com/economic-calendar#2021-10-22
  • Stock markets may be vulnerable to political volatility as China flexes its military might against Taiwan ahead of the Biden-Xi summit. Will reconciliation yield to rockets? Find out from @ZabelinDimitri here:https://t.co/YscFLDpan6 https://t.co/CoJhC9vHpB
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.20% Silver: 0.19% Oil - US Crude: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/HrKCRbsUJP
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.20% 🇳🇿NZD: 0.19% 🇨🇦CAD: 0.15% 🇨🇭CHF: 0.03% 🇬🇧GBP: 0.01% 🇯🇵JPY: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/b3hu5OEDFQ
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.58%, while traders in USD/JPY are at opposite extremes with 77.23%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Ghq29hRjlq
  • RT @josh_wingrove: Biden went to Baltimore and gave the biggest update yet on the Congressional talks, said the corporate tax rate won’t ri…
  • Gold prices are under pressure after China growth slowed and New Zealand inflation surged, with investors pricing in more aggressive central bank policy outlooks, which is supporting bond yields.Get your market update from @FxWestwater here:https://t.co/9Jiy8IKqQv https://t.co/7ncLoSYQre
  • Australian Dollar gaining during morning Asia trade after reports crossed the wires that #Evergrande made a bond interest payment Sentiment is cautiously improving, #SP500 futures are pushing higher $AUDUSD #SP500 #AUD https://t.co/vWmn6HJfcd https://t.co/FeEc5HTa31
  • RT @josh_wingrove: Some clarity: President Biden's comment on the tax rate was referring to the challenge of having the votes to raise the…
  • #RBA buys bonds to defend yield target for first time since February -BBG #AUD $AUDUSD
Crude Oil Prices Hit 2-Month High on Supply Squeeze, 2021 Top Eyed

Crude Oil Prices Hit 2-Month High on Supply Squeeze, 2021 Top Eyed

Ilya Spivak, Head Strategist, APAC

CRUDE OIL OUTLOOK:

  • Crude oil prices surge amid supply shortage despite OPEC+ output increase
  • US inventories at the lowest in two years on supply chain woes, Ida impact
  • WTI working on fifth day of gains, eyeing a path to 2021 high near $77/bbl

Crude oil prices stormed higher at the start of the trading week, with the WTI benchmark hitting a two-month high and tracking to issue a fifth consecutive day on the upside. Shortages appear to be driving the rally amid gaps in supply chains and lingering output disruptions following Hurricane Ida.

US inventories have dropped to the lowest since mid-October 2018 even as the number of active rigs rose to the highest in 17 months while the OPEC+ group of major producers have gradually eased production caps.Shipping costs have jumped to a 13-year high.

A quiet economic calendar offers few roadblocks to derail momentum Monday. Later in the week, inventory updates from API (Tuesday) and the DOE (Wednesday) are due. Monthly reports outlining market conditions and updating supply/demand projections from OPEC (Tuesday) and the EIA (Thursday) are also on tap.

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices are testing above swing-high resistance at 74.23, with confirmation on a daily closing basis putting July’s peak just below the $77/bbl figure into focus. A bit of friction at 75.52 – a minor inflection point – may be seen along the way.

Neutralizing upward momentum probably demands a reversal that re-establishes a foothold below support at 72.17. That may mark a break of rising trend support guiding prices upward since late August. Probing below the $70/bbl mark might follow thereafter.

Crude oil price chart

Crude oil price chart created using TradingView

CRUDE OIL TRADING RESOURCES

--- Written by Ilya Spivak, Head Strategist, APAC for DailyFX

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES