• After hitting multi-year highs near the $86.00 per barrel level, WTI has since backed off to trade around $85.00.
  • Market commentators have attributed rising geopolitical tensions in the Middle East as behind the latest push higher.
  • Goldman Sachs is calling for oil (Brent) to hit $100 per barrel in H2 2022.

After hitting multi-year highs early on during the European trading session near the $86.00 per barrel level, front-month WTI futures have since backed off to trade around $85.00, though still hold onto gains of about 60 cents on the session. Market commentators have attributed geopolitical tensions as driving the latest upside in crude oil prices, after an attack by Yemen’s shia Houthi militia on the UAE earlier in the week ratched up tensions in the region. Following the drone and missile strikes that killed three people and triggered explosions in fuel trucks, the Houthis have been threatening to target further UAE facilities.

The latest increase in Middle Eastern tensions comes at a time when global crude oil markets are already looking a lot tighter than analysts had been expecting at the start of the year. A lower-than-expected hit to global demand from Omicron combined with the difficulties some smaller OPEC+ members have been having in lifting output led Goldman Sachs to announce a for oil (Brent) to hit $100 per barrel in H2 2022. The bank explained that the above factors had “kept the global oil market in a larger deficit than even our above consensus forecast”, a factor that has likely been driving growing premiums in various physical crude oil grades over future prices in recent weeks.

“If current geopolitical tensions continue and OPEC+ members can’t deliver on their 400,000 barrel per day increase, macros coupled with the strong technical outlook could see prices push toward the $100 mark” analysts at CMC Markets concluded. Indeed, the technicals for oil have been looking relentlessly bullish in recent weeks. Since the December 20 low at $66.11, WTI has rallied nearly $20.00 or close to 30%, after consistently printing higher highs followed by higher lows. Though WTI did print multi-year highs on Tuesday, it hasn’t yet been able to convincingly break above the 2021 highs. Was this to be the case and was WTI to surge above $86.00, the next level of resistance to target would be the January 2014 lows in the $91.50 area.

WTI US OIl

Overview
Today last price 84.5
Today Daily Change 0.79
Today Daily Change % 0.94
Today daily open 83.71
 
Trends
Daily SMA20 77.38
Daily SMA50 75.08
Daily SMA100 75.7
Daily SMA200 71.93
 
Levels
Previous Daily High 84.09
Previous Daily Low 82.93
Previous Weekly High 83.74
Previous Weekly Low 77.44
Previous Monthly High 77.26
Previous Monthly Low 62.34
Daily Fibonacci 38.2% 83.65
Daily Fibonacci 61.8% 83.38
Daily Pivot Point S1 83.07
Daily Pivot Point S2 82.42
Daily Pivot Point S3 81.91
Daily Pivot Point R1 84.22
Daily Pivot Point R2 84.74
Daily Pivot Point R3 85.38

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD bulls flirt with 0.7100 with eyes on Aussie Retail Sales, US PCE Inflation

AUD/USD bulls flirt with 0.7100 with eyes on Aussie Retail Sales, US PCE Inflation

AUD/USD holds onto the recently sidelined moves around 0.7100 as bulls and bears jostle over mixed clues heading into the key data on Friday. Also restricting the Aussie prices are downbeat statistics at home and looming economic fears over the largest customer China.

AUD/USD News

EUR/USD: Bulls are taking control and eye the 1.08 area

EUR/USD: Bulls are taking control and eye the 1.08 area

EUR/USD's market structure is now bullishon the daily chart. Euro's support near 1.0705 could offer a base from which bulls can engage in order to target the 1.08 areas. For the FOMC minutes, the pair was based at the targetted support area and there were prospects of a higher correction from support.

EUR/USD News

Gold bounces from $1,850, DXY remains soft on soaring market mood

Gold bounces from $1,850, DXY remains soft on soaring market mood

Gold price (XAU/USD) witnessed a minor pullback towards $1,850.00 in its initial trading hours but has bounced back sharply. The precious metal is displaying a balance auction in a range of $1,840.76-1,856.35 from Wednesday.

Gold News

Will Cardano price finally show its cards?

Will Cardano price finally show its cards?

Cardano price is preparing for a retest of $0.80. Still, jumping in early might be too risky. Traders should wait for confirmation signals.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures