WTI surges +2% to $ 72.40, fresh 11-week tops
- Tighter markets and higher price-forecasts drive oil prices through the roof.
- $ 73 back on sight, as technical set up points to further upside.
WTI (oil futures on NYMEX) opened the week with a bullish gap and extended Friday’s upbeat momentum, as the bulls cheered tightening oil markets and expectations of rising prices.
The US sanctions on Iran, targeting the OPEC’s No. 3 oil exporter’s oil sector, comes into effect from Nov. 4, are likely to cause supply disruptions. Also, the US crude stockpiles sit at 3-1/2-year lows, according to the latest EIA data.
In the wake of tightening oil supplies, commodity giants Trafigura and Mercuria forecasted that Brent could rise to $90 per barrel by Christmas and surpass $100 in early 2019, which further collaborated to the upsurge in the prices.
Meanwhile, the oil-price rally picked-up strength following the weekend’s OPEC+ meeting in Algeria, which saw the OPEC paying little heed to the US President Trump’s demand to lower prices.
WTI Technical Levels
Resistances: $ 72.50 (psychological level), $ 72.83 (mid-May tops), $ 73 (round number).
Supports: $ 71.50 (daily pivot), $ 70.73 (Sept 20 low), $ 70.32 (10-DMA).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
