WTI “melt-up” accelerates, hits fresh seven-year highs above $93.00/barrel and on course for seventh successive weekly gain


  • WTI hit fresh seven-year highs at $93.00/barrel in recent trade as the recent melt-up accelerated.
  • WTI is on course to post a seventh successive weekly gain during which time it has rallied over 30%.

Oil bulls put their foot on the accelerator on Friday, driving prices to fresh seven-year highs and leaving major crude benchmarks on course to post a seventh successive week of gains, with trading conditions increasingly resembling that of a “melt-up”. Front-month WTI futures surged nearly $3.0 on the session easily surpassing resistance in the mid-$91.00s and even hit the $93.00 level. That takes WTI’s weekly gains to close to $6.0 (nearly 7.0%) and the seven-week run of gains to more than 30% (recall WTI was trading around $70/barrel in mid-December).

Familiar themes were cited as behind the ongoing upside in oil prices; the winter storm that recently hit the US and sent temperatures plummeting, geopolitical tensions between Ukraine, Nato and Russia. A few analysts highlighted concerns that the US storm might impact US shale output in the Permian Basin. Market commentators also highlighted fresh evidence of OPEC+ struggles to lift output/exports; recent data showed Iraqi output in January was well below it allowed quota under the existing OPEC+ pact and Kazakhstan reportedly wants to keep more of its output at home to lower domestic prices and ease civil tensions.

“It may just be a matter of time until we're closing in on triple figures” remarked one analyst at OANDA. Commerzbank on Friday upped its Q1 2022 oil price forecast to $90/barrel from $80 before. However, Citi cautioned that the oil market may soon revert back into surplus, perhaps as soon as next quarter and recommended selling the Brent crude future for December delivery on the anticipation of crude oil build later in the year.

WTI US Oil

Overview
Today last price 91.42
Today Daily Change 2.48
Today Daily Change % 2.79
Today daily open 88.94
 
Trends
Daily SMA20 84.37
Daily SMA50 76.96
Daily SMA100 77.86
Daily SMA200 73.46
 
Levels
Previous Daily High 89.3
Previous Daily Low 85.86
Previous Weekly High 88.22
Previous Weekly Low 81.71
Previous Monthly High 88.22
Previous Monthly Low 74.12
Daily Fibonacci 38.2% 87.99
Daily Fibonacci 61.8% 87.17
Daily Pivot Point S1 86.77
Daily Pivot Point S2 84.59
Daily Pivot Point S3 83.33
Daily Pivot Point R1 90.2
Daily Pivot Point R2 91.47
Daily Pivot Point R3 93.64

 

 

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

EUR/USD stays under bearish pressure, closes in on 1.0500

EUR/USD stays under bearish pressure, closes in on 1.0500

EUR/USD has extended its daily slide in the American session and declined below 1.0530. The one-year inflation expectations of the Conference Board's Consumer Confidence Survey climbed to 8% in June from 7.5% in May, providing a boost to the greenback. 

EUR/USD News

GBP/USD continues to push lower toward 1.2200

GBP/USD continues to push lower toward 1.2200

GBP/USD has turned south in the American session and slid toward 1.2200. The US Dollar Index extended its daily rally toward 104.50 after the latest US data on Tuesday, forcing the pair to stay under bearish pressure. 

GBP/USD News

Gold continues to fluctuate in tight range above $1,820

Gold continues to fluctuate in tight range above $1,820

Gold is having a difficult time making a decisive move in either direction on Tuesday and fluctuating in a narrow range above $1,820. As investors assess the latest data releases from the US, the 10-year US T-bond yield clings to modest gains above 3.2%.

Gold News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

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