The price of Chicago WTI crude oil futures is up 1.53% at $113.47 per barrel on mid-Wednesday trades.
Crude oil prices gained for a fourth consecutive days on Wednesday with tight supply worries offsetting concerns about a weaker global economy. With countries accounting for 20% of global oil producing capacity presently under some form of sanctions, the concerns of tightening supply remain on investors’ minds.
Also supporting prices were concerns about the ability of Saudi Arabia and the United Arab Emirates to activate their spare capacity to make up for lost Russian supply. OPEC and OPEC+ began a series of two-day meetings on Wednesday. At its last meeting in early June OPEC+ decided to speed up production cuts and to raise output each month by 648,000 barrels per day (bpd) in July and August, up from earlier increases of 432,000 bpd. However, prices kept rising due to tight supply and worries that OPEC is coming close to running out of spare capacity to raise output any further.
On the technical side, the RSI of Chicago WTI crude oil futures stood at 52.45 and is currently trading above MA (5) and MA (50) but below MA (20). So, BUY position can be taken with the following target and stop-loss: