WTI surges above $100 on a soft US dollar, supply fears

  • US crude oil prices, also known as WTI, reclaim the $100 figure on supply issues.
  • Russia’s halt of a Kazaks terminal cut supply by 1.2 million BPD.
  • WTI Price Analysis: Buyers stepped in around $95.00, eyeing the 100-DMA at around $107.00.

Oil prices rise on Thursday, jumping from weekly lows around $95.13, as the greenback retraces from two-year highs and recession fears abate. At the time of writing, Western Texas Intermediate (WTI) is trading at $102.71, rising almost 5%.

Crude oil prices advance sharply, bolstered by a weaker US dollar

Sentiment remains positive amongst investors. US equities are trading in positive territory while the greenback remains soft, a tailwind for oil prices. Also, Russia’s ordering a halt to a key Kazakh export terminal that usually loads 1.24 million barrels a day in July sparked supply fears amongst traders, spurring a rise in prices.

In the meantime, US energy inventories showed that Gasoline stockpiles fell, as reported by the US EIA on Wednesday. US crude stockpiles increased more than expected as inventories rose 8.23 ​​million barrels last week.

WTI Thursday’s price action depicts that crude prices opened around $98.00 but slid near July’s 6 low around $95.09, but rose sharply, towards a daily high at around $104.45. However, an upslope previous support trendline turned resistance, exerted downward pressure on the black gold, which, although gaining, trades off the highs, above the $100 mark.

WTI Price Analysis: Technical outlook

On Wednesday, WTI prices fell towards the 200-day moving average around $93.50, but the downward move was capped by April’s 22 daily low at $95.34, though the price reached $95.13, bouncing later, and closing above July’s 5 $97.46 daily low.

Development, oil is upward biased, and a re-test of the 107.00 mark is on the cards. Oil’s first resistance would be $103.00. A breach of the latter will expose July’s 7 high at $104.45, followed by $105.00, and then the 100-DMA at around $107.04.

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