- Western Texas Intermediate posted a three-month high at $ 76.65.
- Developing energy crises in the UK and Europe could keep oil prices high.
- From a technical perspective, WTI’s bullish bias remains unchanged.
The WTI it fell from a three-month high around $ 76.65 during the New York session. At the time of writing, it is trading at $ 74.90, shedding 0.50% amid pessimistic market sentiment. The US Dollar Index (DXY), which tracks the dollar’s performance against six rivals, is up 0.40% to 93.79, weighing on the price of Western Texas Intermediate (WTI).
Global energy crisis, rising oil prices
During the European session, oil prices rose above $ 76.00 on the prospect of an energy crisis in the UK and Europe.
In the UK, Prime Minister Boris Johnson put the army on hold to help deliver supplies to petrol stations. The Gasoline Retailers Association said some of its members in England have run out of fuel. British companies said they expect demand to decline in the coming days as there is enough fuel in refineries and terminals.
Meanwhile, the UK and Ditch first month natural gas contract rose 12% in early trading in Europe before cutting back on some losses. European leaders will discuss rising energy prices when they meet for a summit on October 21-22.
WTI Price Forecast: Technical Outlook
WTI trades above the neckline of an inverted head and shoulders pattern. During the day, it tested the July 6 high at $ 76.40; however, the price fell. Failure to close above $ 75.00 could expose the July 30 high of $ 73.88 as the first support level. A break below that level could push WTI towards $ 73.00, followed by the September 15 high of $ 72.88.
On the other hand, a daily close above $ 75.00 could give the WTI bulls some breathing space as they attempt to resume the bullish bias towards the inverse head and shoulders target of $ 80.00.
The Relative Strength Index is at 66, slightly lower, suggesting that oil prices could consolidate in the short term.