Crude oil rises on prospects of solid demand and tight supplies

WTI crude oil futures price

Chicago WTI crude oil futures price is up 1.21% at $111.12 per barrel on mid-Wednesday trades.

On Wednesday, oil prices rose after witnessing two bearish sessions on tight supplies and the prospect of rising crude oil demand from the summer driving season in the United States, the world’s biggest crude oil consumer. Additionally, the prospect of the Chinese economy gradually opening up also factors into crude oil prices.

While there is a rising prospect of more robust demand in the future, many analysts have warned of tight supplies. The global crude oil supplies continue to tighten as buyers avoid oil from Russia, the world’s second-largest exporter, due to the Western sanctions.

While the European Union’s plan to phase out Russian oil imports is currently under discussion, there is some opposition from its member countries. On Tuesday, the France foreign minister commented optimistically on the prospect of securing an agreement on the European Union sanctions package to phase out Russian oil imports.

On the technical side, the RSI of Chicago WTI crude oil futures stood at 56.03 and is currently trading above all SMAs: MA (5), MA (20), and MA (50). So, BUY position can be taken with the following target and stop-loss:

TRADE SIGNAL: CHICAGO WTI CRUDE OIL FUTURES – BUY: 112, TARGET: 115, AND STOP-LOSS: 110

About Author

Related posts

copper

Copper set to end June with a 16-month low

The price of COMEX Copper futures is down 2.33% at 3.6925 per pound on mid-Thursday trades. Copper prices further declined on Thursday. This makes copper prices on track for the biggest quarterly percentage fall since March 2020. The potential of a recession occurring coupled with the decline in demand...

Read More
US Dollar Index

Euro trims declines against U.S. dollar after Spanish inflation surge

EURUSD is trading down 0.10% at 1.0511 The euro steadied on Wednesday after falling to a six-day low, reacting to the release of conflicting inflation data in Germany and Spain that created a difficult backdrop for European Central Bank policymaking. The European common single currency decline in early London...

Read More

Leave a Reply