Crude Oil’s Bullish Channel Continues to Play – Supply Concerns in Focus
Arslan Butt • 1 min read
What’s up, traders.
The market still remains quiet as traders stay out of the market in the wake of Chrismas and New Year Holidays. WTI crude oil prices increased by more than 20% this year, but there were no sharp spikes, and crude futures barely sniffed $70 a barrel despite assaults on the world’s biggest oil yielder, sanctions that paralyzed crude exports of two OPEC members, and large supply cuts from big oil-producing nations.
Crude-oil futures were relatively unchanged at $61.72 a barrel, while Brent was up 0.4% to $68.16 a barrel. The Energy Information Administration (EIA) reported that crude oil inventories declined by 5.47 million barrels in the week ended December 20 (-1.43 million barrels expected).
Daily Support and Resistance
Pivot Point 60.89
On Monday, the WTI crude oil’s bullish channel remains intact, and it continues to support oil prices around 60.50 along with resistance around 61.10. A bullish breakout of this resistance can extend buying until 61.75.
US oil is likely to trade bullish over 60.89 and bearish below the same level. Whereas, the bearish breakout of 60.89 support can lead crude oil prices towards 59.95. Good luck!