• Western Texas Intermediate printed a  two-month high at 73.90
  • Oil companies with installations in the Gulf of Mexico turn to Iraq and Canadian oil.
  • The crude oil rally was capped by China’s first sale of crude of its reserves.

Western Texas Intermediate (WTI) crude oil is climbing for the fourth day in a row, surging almost 1%, trading at $73.86 at the time of writing. 

The market sentiment is downbeat. Major global equity indices closed with losses, except for the Japanese Nikkei and Topix, which reported gains of 2.06% and 2.31%. Meanwhile, as the New York session advances, the S&P 500, the Dow Jones, and the Nasdaq record losses between 0.01% and 0.25%.

Meanwhile, the US Dollar Index, which influences the price in commodities stills up some 0.17%, at 93.25.

WTI reached two-month highs at $73.90

The surge in oil prices is due to low inventories in the US, which are near a three-year low, and rising natural gas prices impacting customers who may be forced to switch to oil. Further, no new lockdowns in Europe and robust recovery in China mobility lift the prospects for upside.

In the Gulf of Mexico, crude oil companies that have not been able to re-establish operations turn to Iraq and Canadian oil to meet the market demands. 

Nevertheless, the rally was capped by China’s first sale of crude from its strategic petroleum reserves in its attempt to curb inflation in raw material prices.

WTI Price Forecast: Technical outlook

Daily chart

WTI is trading above the neckline of an inverted head-and-shoulders pattern that has bullish implications. A daily close above the July 30 high at $73.88 could propel the black gold towards the inverted head-and-shoulders target of $80.00. But on its way up, it will find the July 13 high at $74.95, followed by $76.00. A decisive break of that level would expose the inverted head-and-shoulders target of $80.00

The Relative Strength Index is at 65, aiming higher, towards oversold levels, but it has room for some upside.
 

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

GBP/USD holds above 1.2100 after UK inflation data

GBP/USD holds above 1.2100 after UK inflation data

GBP/USD trades in positive territory above 1.2100 in the early European session on Wednesday as investors assess the latest inflation data from the UK. On a yearly basis, the CPI climbed to 10.1% in July from 9.4% in June, surpassing the market expectation of 9.8%.

GBP/USD News

EUR/USD consolidates gains below 1.0200 ahead of EU GDP, Fed minutes

EUR/USD consolidates gains below 1.0200 ahead of EU GDP, Fed minutes

EUR/USD consolidates the rebound below 1.0200 amid a cautiously optimistic mood. US dollar extends the pullback ahead of Fed minutes while the euro awaits Eurozone GDP. The shared currency remains weighed down by recession fears and gas crises.

EUR/USD News

Gold’s battle with 50 DMA extends ahead of Fed minutes

Gold’s battle with 50 DMA extends ahead of Fed minutes

Gold price rebounds from weekly lows as the USD resumes correction. US Treasury yields are struggling to find demand ahead of the Fed minutes. XAU/USD needs acceptance above 50 DMA to sustain the recovery.  

Gold News

Solana price hints at a 50% upswing under these specific conditions

Solana price hints at a 50% upswing under these specific conditions

Solana price shows an interesting setup as it tries to overcome a stiff resistance level. The fifth attempt to overcome hurdles will likely be successful due to multiple bullish confluences. Solana price has been on a clear uptrend since producing the June 14 swing low at $25.76.

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