WTI rallies above $75.00 amid a deep energy crisis
- Western Texas Intermediate is ready for its six-weekly gain.
- Oil threatens to close above $75.00 for the first time in three months.
- WTI’s technical outlook looks poised for higher prices.
Western Texas Intermediate (WTI) is advancing during the day, trading at $75.27, recording gains of 0.43% at the time of writing. WTI’s price action for the day has been up and down. However, it is threatening to close above $75.00 for the first time since June of this year, and it would be its sixth weekly gain.
Market sentiment is mixed as US stocks post gains between 0.56% and almost 1%, except for the Nasdaq Composite, barely down 0.02%. The greenback is recording losses for the second consecutive day, as the US Dollar Index is down 0.26%, clinging to 94.02.
Oil’s main driver of the last couple of days it’s the shortage of energy. According to Bloomberg, China ordered state-owned companies to secure energy supplies at all costs, as Beijing struggles with a deep power crisis. When that news hit the wires, WTI’s spiked from around $73.40 to $75.30’s. Further, rising coal and natural gas prices bolstered the prospects for higher crude oil prices. Investors’ focus turns to the OPEC+ meeting to be held the following week on October 4.
WTI Price Forecast: Technical Outlook
Daily chart
Oil is tip-toeing beyond $75.00. A daily close above that level would push prices to test $77.00 for the second time in two weeks. If oil buyers breach that level, a run towards $80.00 is on the books.
On the flip side, failure at $75.00 could pave the way for further losses. The first support would be October 1 low at $74.21. A sustained break of the latter would expose $74.00, followed by $73.12.
The Relative Strength Index is at 65, with little room to spare, in case of another leg up.
KEY ADDITIONAL LEVELS TO WATCH
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
