On Monday’s trade, the Chicago WTI crude oil futures price is up 1.60% at $102.21 per barrel.
Oil prices continued to surge on Wednesday as Moscow declared that the peace talk with Ukraine had hit a dead end, intensifying supply worries. A limited downside is seen in crude oil prices. U.S. President Joe Biden accused Russia of genocide and Russia’s comment on the peace talk. There is no sign of de-escalation in the Russo-Ukraine conflict.
Reports of China easing lockdown measures combined with the supply disturbance pushed crude oil prices higher. While weak economic data from China and Japan would keep a lid on crude oil gains.
Crude oil prices are also drawing support from decreasing Russian oil and gas condensate production, which has fallen below 10 million barrels per day (bpd) on Monday, the lowest since July 2020.
The OPEC has warned that it would not be able to replace the Russian supply and signaled that it would not pump more oil. It has reduced its global oil demand forecast from a growth of 4.15 million bpd to 3.67 million barrels bpd, a significant reduction of 480,000 bpd.
On the technical side, the RSI of Chicago WTI crude oil futures stood at 50.59 and is currently trading above MA (5) and MA (50) but below MA (20). So, BUY position can be initiated with the following target and stop loss: