- West Texas Intermediate hit a seven-year high at $ 79.23.
- The current energy crisis keeps WTI’s bullish bias unchanged.
- WTI: A breakout above $ 80.00 could pave the way to $ 90.00, as shown on the weekly chart.
El West Texas Intermediate (WTI), the benchmark US oil index is advancing for the fifth day in a row, trading at $ 78.67, up 1.59% during the day at the time of writing.
Market sentiment remains bullish, as evidenced by US stock indices rising 0.74-1.53%. However, inflationary pressures continue to threaten an economic slowdown. Crude oil is hitting a new seven-year high driven by rising prices for natural gas, the most expensive electricity in Europe, and the Chinese government ordering major state-owned energy companies to secure supplies for this winter at all costs. coast.
In addition, on Monday, the Organization of the Petroleum Exporting Countries and its allies (OPEC +) decided on a minimum production increase of 400,000 barrels per day for November, causing a $ 3 increase in the price of WTI.
Later, during the US session, the American Petroleum Institute will release its Crude Oil Reserves for the week ending October 1. The previous reading was 4.127M. If the figures disappoint the forecast, it could drive the price of the WTI higher.
WTI Price Forecast: Technical Outlook
WTI jumped above $ 78.00, leaving that price level as the first support. However, a daily close above $ 79.00 could push WTI into a demand zone.
In case of that result, the first resistance would be $ 80.00. A break above the latter could pave the way for further gains, and a move towards $ 90.00 and above is in the projections.
However, there would be some obstacles along the way. The November 2012 low, around $ 84.04, would be the first resistance, followed by the January 2014 lows at roughly $ 91.21.
On the other hand, if it falls below $ 79.00, the immediate support would be $ 78.00. A drop from the latter would expose key support levels, the July 6 high at $ 76.95, followed by the July 13 high at $ 75.47.
The Relative Strength Index (RSI) is at 74, heading higher, at overbought levels suggesting that WTI could head towards a lower correction before resuming its uptrend.
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