fundamental News - OIL
The Western Texas Intermediate (WTI) has been performing excellently
since the start of the year. The commodity kicked it off a notch over
the past few months as global supply chain issues continue to affect
trades.
expectation today: bearish
Earlier today, the WTI hit a fresh $83 per barrel during the Asian
trading session. The supply dip and global demand upsurge boosted the
demand for black gold. Thanks to the demand surge, crude oil prices
touched a fresh seven-year high. The shortage of
natural gas in Europe and Asia continues to boost the oil demand.
Despite the recent rally, Howie Lee, Economist at OCBC Bank, says
he is not sure WTI and Brent could reach the $100 level before the end
of the year. The economist said there is no justification for the oil
price to hit the $100 mark despite the ongoing
supply bottleneck.
Lee added that he believes that this is as high as crude oil prices
can go, with Brent around the $85 level and WTI trading around $80 per
barrel. However, he believes the prices could increase by a margin of
$3- $5/bbl.
The crude oil market has had its biggest boom in years. 2021 has
favored the black gold as prices as up by more than 70% since the start
of the year. WTI started trading at $49 per barrel at the start of the
year, and it is now at $82.25 per barrel.
Despite its earlier rally, the WTI is currently down by 0.5% over
the past few hours. WTI is trading at $82.259 after rallying past the
$83 mark earlier today. If the commodity can maintain its recent
momentum, then it could attempt to top the $85 soon.
Technical analysis
Oil price reverse from the up-channel resistance after touching
high at $83.17, now maintaining within the 4-hourly support $81.65. As
downside momentum increase, expect price to lower towards the 50-SMA at
$80.48.