Crude oil prices surge today
The price of WTI crude oil is extending above the $87 level to a high of $87.37.
Oil prices have surged today following the U.S.’s enhancement of sanctions against Russian crude exports, amplifying supply anxieties in an already constrained market.
The U.S. targeted tankers carrying Russian oil priced above the G7’s $60 per barrel cap, a move to tighten restrictions in response to Russia’s invasion of Ukraine.
The development, coupled with the ongoing conflict between Israel and Hamas, has stirred concerns over potential disruptions to Middle Eastern oil exports. Despite these geopolitical tensions, OPEC maintains its global oil demand growth forecast, attributing its optimism to a resilient world economy and anticipated demand spikes in China.
Itan’s oil minister is now out saying that he is predicting the price of oil will reach $100 per barrel due to the Middle East situation.
Technically, looking at the daily chart below, the low price from yesterday reached $82.35. That was precisely at the low of the swing area that I have been outlining as support recently. Buyers leaned against the level on the dip, and pushed the price higher.
In trading today, another level was broken up at $84.85. That level was the high price from August (was the highest price for the year at the time). In September, the price extended above that level on its way to the $95 area.
That level is now a risk/bias defining level for buyers looking for more upside. On the top side, $88.42 is the next target on the daily chart.