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Crude Oil Continues Higher on Friday, WTI Nears $75

  • Crude oil markets hit a new high for the week before pulling back on Friday.
  • WTI ranged between $74.50 and $73.00 on Friday.
  • Freezing temperatures and geopolitical tensions accentuate supply concerns.

Crude oil bids generally rose during the week in nervous trading that saw frequent peaks and dips at highs and lows, with US West Texas Intermediate (WTI) crude oil settling for the week near $73.60 with a 5.6% or $3 difference between the late week peak set late Friday at $74.60 and Wednesday's weekly low at $70.62.

Broad market concerns about the Organization of the Petroleum Exporting Countries (OPEC) production limits that plagued energy markets for much of the third quarter of 2023 have all but evaporated, replaced by broad market concerns. that Iran-backed Houthi rebels attacking civilian shipping in the Red Sea will hamper critical global supply lines between Europe and Asia.

Bullish crude oil prices on supply concerns have seen significant downward pressure, with the US reaching record levels of crude oil production in 2023 and on track to continue increasing barrel output in the future.

Canada is also poised to hit new production highs as crude oil producers ramp up output and the Trans Mountain pipeline nears completion, making it easier for the oil-exporting country to add to its supplies of light sweet crude oil. to the US logistics chain. As the world's fourth-largest producer of crude oil, Canada is positioned to further propel the U.S. to the top of the rankings as a global producer and net exporter of petroleum products.

Despite a historic glut of partially refined crude oil products, declining near-term crude oil barrel supplies are drawing a line under barrel prices as energy markets await a stronger balance sheet outlook. of global crude oil supply.

WTI Technical Outlook

Choppy markets pulling in both directions leave crude oil in the middle of the range, with WTI testing familiar territory near the $74.00 area. WTI has traversed the key price level in a tightening pattern since declining in early November, and a sideways move on the WTI chart has the 50-day SMA declining into intraday territory.

The 200-day SMA is accelerating a pullback from the $78.00 area, which will add bearish pressure to the near-term price action to the downside if the bulls are unable to push WTI back above technical resistance at medium term in the $76.00 area.

WTI Daily Chart

WTI US OIL

Overview
Latest price today 73.6
Daily variation today -0.29
Today's daily variation -0.39
Today's daily opening 73.89
Trends
daily SMA20 72.62
daily SMA50 73.63
SMA100 daily 79.65
SMA200 daily 77.38
Levels
Previous daily high 74.18
Previous daily low 72.12
Previous weekly high 75.28
Previous weekly low 70.21
Previous Monthly High 76.79
Previous monthly low 67.97
Daily Fibonacci 38.2 73.39
Fibonacci 61.8% daily 72.91
Daily Pivot Point S1 72.61
Daily Pivot Point S2 71.33
Daily Pivot Point S3 70.54
Daily Pivot Point R1 74.67
Daily Pivot Point R2 75.46
Daily Pivot Point R3 76.74

Source: Fx Street

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