Oil prices climbed to their highest level in 10 months today, as robust demand coupled with supply restrictions imposed by the top members of OPEC+ significantly tightened global fuel markets. WTI crude oil is now facing an important resistance zone at 90.
OPEC’s Monthly Oil Market Report underscored a looming supply crunch that threatens to eclipse anything seen in over a decade, indicating a daily shortfall exceeding 3 million barrels. On the other hand, OPEC maintained its upbeat forecasts of daily global oil demand increase of 2.25m barrels in 2024, just slightly less than growth of 2.44m barrels expected in 2023.
Technically, WTI crude oil is now heading very close to an important resistance around 90 psychological level, with 38.2% retracement of 131.82 to 63.67 at 89.70. Decisive break of level raise the chance that the rally from 63.67 is developing into a more sustainable medium term up trend. Next target would be 100% projection of 66.94 to 84.91 from 77.95 at 95.20. Meanwhile, outlook will only be neutral at worst as long as 84.91 resistance turned support holds, even in case of rejection by 90.