Crude Oil Is Under Pressure – Is It a Good Sell Below 79.75?

Oil prices remained stable after reaching a three-week high on Tuesday. Restarting at some US energy plants shut down by winter storms outweighed gains from the optimism of a demand recovery as China eases COVID-19 restrictions.

Brent crude rose 41 cents, or 0.5%, to $84.33 per barrel, while West Texas Intermediate crude fell 3 cents to $79.53 per barrel in the United States.

Earlier in the day, both benchmarks reached their highest levels since December 5. The markets in the United Kingdom and the United States were closed on Monday for the Christmas holiday.

After an Arctic storm dropped temperatures below freezing and knocked out power, instruments, and steam at facilities along the Gulf Coast of the United States, refineries started to work again and increase production.

WTI Crude Oil Technical Outlook

The WTI crude oil price rose to its target of $80.40, but it failed to break through. When the candles close below this level, it is more likely that the oil price will go down.

Having said that, US crude oil is likely to trade lower than 79.75, with targets of 79 and 78.45. A bullish crossover above 79.75, on the other hand, can drive further gains to 80.45 and 81. 

Today’s forecast: Bearish under 79.75.