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