Crude oil price has extended the week’s gains following eased concerns over the severity of the Omicron variant and its impact on global oil demand. Initial studies have shown that the existing vaccines are effective against the latest coronavirus variant. According to BioNTech and Pfizer, a booster shot may be needed to supress Omicron.
Besides, data released by EIA on Wednesday indicated that the weekly stockpiles had declined by 240,000 barrels for the week ending on 3rd December. Granted, it is a lesser draw than the prior week’s 910,000 and forecasted 1.705 million barrels.
WTI futures has extended the gains recorded in Wednesday’s session. Notably, the benchmark for US oil has been on a rebound last week when it hit 62.51; its lowest level since late August. A similar trend is observed in the benchmark for global oil – Brent futures.
At the time of writing, WTI futures were down by 0.43% at 72.33. On a four-hour chart, it is trading above the 25 and 50-day EMAs, which have converged at 71.05. Based on these technical indicators, crude oil price is in good shape to record further gains in the ensuing sessions.
In the near term, the commodity will likely continue to find resistance along Thursday’s high at 73.45. Subsequently, the range between 71.05 and 73.45 will be a crucial one. Above the range’s upper border, the bulls will have an opportunity to push crude oil price to 75.25, which is along the long-term 200-day EMA. On the flip side, a move below the horizontal channel’s lower border may place the support at 70.05.
This post was last modified on Dec 09, 2021, 09:17 GMT 09:17