Chicago WTI crude futures price is up 1.65% at $103.64 per barrel.
Oil prices rose on Wednesday after witnessing a bearish session on Tuesday. The US and its allies threaten new sanctions on Russia over charges of war crimes in northern Ukraine, raising supply concerns. Elevated supply concern paired with a strong dollar contributed to the recent rise in crude oil prices.
While the recent resignation of the Kuwaiti government may be favorable for oil. Kuwait has planned to increase oil production from 2.6 million bpd to 4 million bpd. However, this has been stalled by political infighting, which may be abated with a new government in place.
The future outlook of oil prices will be influenced by the following elements: China Shanghai’s lockdown, build-up in the US crude oil stockpiles, coordinated release of SPR, etc.
On the technical side, the RSI of Chicago WTI crude futures stood at 49.80 and is currently trading below MA (20) but above MA (5) and MA (50). So, BUY position can be taken with the following target and stoploss: