- The Western Texas Intermediate posted a two-month high at $ 73.90.
- Oil companies with facilities in the Gulf of Mexico turn to Iraqi and Canadian oil.
- The rally in crude oil was capped by China’s first sale of crude from its reserves.
Crude oil Western Texas Intermediate (WTI) It is rising for the fourth day in a row, up nearly 1%, trading at $ 73.86 at the time of writing.
Market sentiment is pessimistic. The main world stock indices closed with losses, with the exception of the Japanese Nikkei and the Topix, which posted gains of 2.06% and 2.31%. Meanwhile, as the New York session progresses, the S&P 500, the Dow Jones and the Nasdaq post losses between 0.01% and 0.25%.
Meanwhile, the US dollar index, which influences the price of raw materials, continues to rise 0.17%, to 93.25.
WTI hit two-month highs at $ 73.90
The increase in oil prices is due to low inventories in the US, which are close to a three-year low, and the increase in natural gas prices affects customers who may be forced to switch to the Petroleum. Furthermore, the absence of new blockades in Europe and the solid recovery of mobility in China raise upward prospects.
In the Gulf of Mexico, crude companies that have not been able to re-establish operations are turning to Iraqi and Canadian oil to meet market demands.
However, the rally was capped by China’s first sale of crude from its strategic oil reserves in its bid to curb inflation in commodity prices.
WTI Price Forecast: Technical Outlook
Daily chart
WTI is trading above the neck of an inverted head and shoulders pattern that has bullish implications. A daily close above the July 30 high at $ 73.88 could propel black gold towards the inverted head-and-shoulders target of $ 80.00. But on your way up, you will find the July 13 high at $ 74.95, followed by $ 76.00. A decisive breakout of that level would expose the inverted head and shoulders target of $ 80.00.
The Relative Strength Index is at 65, pointing higher towards oversold levels, but it has room for some rallies.
Technical levels
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