Oil holds near Nov. 2014 highs, eyes bull flag breakout

  • WTI crude oil is trading at $71/barrel, i.e. just short of recent 3.5-year high of $71.88
  • Eyes a bull flag breakout, could clock fresh 3.5-year highs above $71.88.

Currently, US oil is flat-lined around $71/barrel, having recovered from the low of $70.20 yesterday on the back of the bullish OPEC report.

The cartel revised higher its forecast for global oil demand growth this year by 25,000 barrels per day - a bullish development for oil markets. However, the cartel also revised higher the non-OPEC supply forecast by 10,000 barrels per day, which does not come as a surprise given the rising US oil output. Hence, oil remains bid and on the hunt for fresh 3.5-year highs.

Further, the possibility of reduced exports from Iran after renewed US sanctions is also keeping oil close to Nov. 2014 highs and the technical chart also shows a bull flag setup - a bullish continuation pattern.

WTI Oil Technical Outlook

A bull flag breakout would open the doors to $71.88 (recent highs). A violation there would expose resistance lined up at $74.93 (October 2011 low). On the downside, support is seen at $70.11 (Ascending 10-day MA), $69.56 (April 2018 high).

Chart source: Netstation, Netdania

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Recovery could continue in the short-term

The EUR/USD pair has recovered some ground Friday, ending the week with modest gains at around 1.1050. The American dollar extended its slide as speculative interest couldn’t find a reason to keep on buying it. 


GBP/USD: Brexit hopes maintain Sterling afloat

The GBP/USD pair hit a daily high of 1.2918 on Friday, boosted by news indicating that the  Brexit Party has decided to step down from 43 additional constituencies where Labour won, facilitating the way for a Conservative majority.


USD/JPY: Pressuring resistance but without enough strength

The USD/JPY pair trimmed part of its weekly losses last Friday, closing the week in the red at around 108.80. Demand for safe-haven assets eased despite persistent tensions between the US and China.


Gold looks to close week with small gains below $1,470

The precious metal struggled to find demand on Friday as the upbeat market mood on renewed hopes of the United States and China reaching a trade deal to avoid a tariff hike in December caused investors to move away from safe havens.

Gold News

Crypto Today: Playing with the thin red line

BTC/USD has fallen below $8,500 during the Asian trading session. A close below this support level would put $7,500 on the trading table. ETH/USD is moving below the 50-period exponential moving average.

Read more