Crude Oil looks for the ceiling on Friday as WTI tests $78.00

Crude Oil markets jumped again on Friday, testing two-month highs.
WTI tips back into $78.00, up over 7.5% in 2024.
Energy markets are tilted heavily into net long positions.

Joshua Gibson FXStreet

West Texas Intermediate (WTI) US Crude Oil bid into a two-month high north of 78$.00 per barrel on Friday as barrel traders pile into long bets on continuing geopolitical concerns and near-term supply constraints. Crude Oil prices have skewed to the high side this week after a dogpile into long trades leaves markets exposed to an exacerbated pullback if further net long positions can’t be pulled into the order books.

A cold snap in the US last week temporarily crimped supply lines, adding to a drawdown in US Crude Oil stocks according to reporting by the Energy Information Administration (EIA) this week. EIA barrel counts showed a 9.233 million barrel drawdown in the US for the week ended January 19, adding to the previous week’s drag of 2.492 million barrels. Despite another buildup in refined gasoline adding to already-burgeoning gasoline supplies, energy markets are broadly focusing on the potential for ongoing Crude Oil supply constraints.

Iran-backed Houthi rebels in Yemen launched a fresh attack against US and UK naval targets on Friday, exacerbating Crude Oil jitters despite no reports of significant damage. The Houthis continue to threaten civilian cargo ships bound for the Suez Canal, and nearly ten strikes by coalition naval forces within three weeks have yet to quell Houthi aggression.

According to reporting by Bloomberg, citing Dan Ghali of TD Securities, algorithmic trend followers have pivoted into net long positions with Crude Oil traders net long WTI by around 30%,

WTI Crude Oil Technical Outlook

WTI caught an intraday rebound off the 50-hour Simple Moving Average (SMA) near $76.00 on Friday, and US Crude Oil is up nearly 2.5% on the day. The near-term technical floor is priced in at the 200-hour SMA just north of the $74.00 handle.

Daily candlesticks have WTI testing into the 200-day SMA near 77.25, with oil bids climbing and setting WTI on pace to close in the green for a sixth of the last eight trading session.

WTI Hourly Chart

WT Daily Chart

WTI US OIL

Overview
Today last price	77.51
Today Daily Change	0.34
Today Daily Change %	0.44
Today daily open	77.17

Trends
Daily SMA20	72.97
Daily SMA50	73.47
Daily SMA100	79.1
Daily SMA200	77.26

Levels
Previous Daily High	77.45
Previous Daily Low	75.13
Previous Weekly High	74.6
Previous Weekly Low	70.63
Previous Monthly High	76.79
Previous Monthly Low	67.97
Daily Fibonacci 38.2%	76.57
Daily Fibonacci 61.8%	76.02
Daily Pivot Point S1	75.72
Daily Pivot Point S2	74.26
Daily Pivot Point S3	73.4
Daily Pivot Point R1	78.04
Daily Pivot Point R2	78.91
Daily Pivot Point R3	80.36

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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