- WTI’s US crude oil benchmark rises in the New York session by some 0.62%.
- US EIA inventories fell by 3.6 million barrels, WTI dipped to $75.31 on the release.
- WTI Price Forecast: It has an upward bias that can accelerate towards $79.0, once $77.19 is breached.
US crude oil benchmark, Western Texas Intermediate (WTI), advances during the New York session, trading at $76.39 at the time of writing. Studies on the newly discovered Covid-19 strain Omicron have shown that it causes mild symptoms in people infected. Additionally, people infected with Omicron, but vaccinated at least with two shots, are 50% to 80% less subject of hospitalization.
That said, oil investors reacted positively, pushing WTI prices from $68.50 up to $77.20 in the last eight days, a gain of almost 12.7%, piercing on its way north, critical technical levels, like the 100-day moving average (DMA) and the 50-DMA.
In the meantime, the US Energy and Information Administration (EIA) reported that oil inventories fell in the last week. Oil stockpiles fell by 3.6 million barrels, from 3.1 million estimated by analysts. However, US crude oil production increased to its highest level since May 2020, up to 11.8 million barrels, the highest in 19 months.
WTI Price Forecast: Technical outlook
WTI’s daily chart depicts that black gold has an upward bias. In fact, price action pierced the 50-day moving average (DMA) at $76.05, struggling at the $77.00 handle, retreating towards current levels. Nevertheless, the dip appears to be an opportunity for oil bulls, to re-enter the market at better price levels than Wednesday’s daily high at $77.19.
US crude oil’s first resistance level would be December’s 28 daily high at $76.75. A breach of the latter would open the door for further gains. The next ceiling level would be December’s 29 high at $77.19, followed by November 24 cycle high at $79.02.
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.