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
  • How does stock market liquidity benefit its traders? Learn more here: https://t.co/FWKyIDUwAw https://t.co/tyoYrsh8mQ
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/4078fnQJON
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/kIIBffEMi7 https://t.co/tt59BU8lnS
  • Quarterly earnings from Netflix and Tesla, two big tech companies, will take center stage next week and could set the trading tone for the S&P 500 and the Nasdaq 100. Get your weekly equities forecast from @DColmanFX here: https://t.co/NOCqjJ3TLd https://t.co/HR5xUZeJXp
  • Do you know the difference between investing and trading? Because while the goal might seem the same, they're very different things . Learn more here.https://t.co/fG6fNEPj9q https://t.co/ymGaYjrl1g
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/FOMcsxci50
  • Further your trading knowledge and gain informed market analyses from our expert analyst @DavidJSong on Oil with our free Q4 guide, available for free today.https://t.co/Y6XECmr5fQ https://t.co/XQI3PN4bkQ
  • Nasdaq 100 may hit new high soon. https://t.co/ACtVqiOBl0
  • HSTECH index has likely formed an "Inverse Head & Shoulders" pattern. https://t.co/YFIQEYmuyq
  • The HSI has likely formed a “Double Bottom” chart pattern, which is usually viewed as bullish-biased. https://t.co/wMQ14A867Q
Crude Oil Outlook: WTI Prices Climb, Supply Constraints Support Higher Prices

Crude Oil Outlook: WTI Prices Climb, Supply Constraints Support Higher Prices

Tammy Da Costa, Analyst

Crude Oil, WTI, Brent – Talking Points

  • Crude oil prices continue to soar as supply constraints remain intact
  • US Crude (WTI) breaks above key psychological level of $75.00
  • Brent crude rises above $80.00 for the first time since 2018

Brent Crude Claims $80/b, WTI eyes $77/b

Over the past few weeks, oil prices have continued to proceed along an upward trajectory as commodity shortages remain a key concern for global economies.

As the vaccination program continues to gain traction, Europe and China’s energy crisis have continued to support the bullish narrative pertaining to oil prices over the past month.

With inflationary pressures on the rise, heightened volatility and production concerns have supported the strong rise in commodities, pushing Brent crude to $80.00, a level last tested in 2018.

Oil – US Crude (WTI) Price Action

After four consecutive weeks of gains, WTI crude oil is currently testing a key level of resistance at the psychological level of $76 in an effort to reclaim the July high at $77.11.

After pricing in the fundamental factors which remain at the forefront of risk sentiment, oil prices may likely continue to sustain the upward trajectory, at least for now.

If bulls are able to push through the key level of resistance at $77, a breakout towards $80.00 may be in the cards. However, fears of higher wage inflation from the US could increase hawkish Fed monetary policy expectations.

That may hurt WTI, and increased selling pressure could result in a resumption of the bear trend and a possible retest of psychological support at $70.00. Still, it seems that in the near-term, demand is poised to outstrip supply.

US Crude Oil (WTI) Daily Chart

Crude Oil Outlook: WTI Prices Climb, Supply Constraints Support Higher Prices

How to Trade Oil: Crude Oil Trading Strategies & Tips

Meanwhile, the weekly chart below illustrates how Fibonacci levels from historical moves have provided additional support and resistance for oil prices over a longer period of time.

While the 76.4% retracement of the July – August move will likely continue to provide support for the longer-term move at $73.47, the commodity channel index (CCI) has risen above 100, a potential indication that WTI may be entering into oversold territory.

US Crude Oil (WTI) Weekly Chart

Crude Oil Outlook: WTI Prices Climb, Supply Constraints Support Higher Prices

Chart prepared by Tammy Da Costa using TradingView

--- Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

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

DISCLOSURES