WTI highest in more than 3 weeks

5 giorni fa

USOIL hit its highest level in more than three months in early trading on Monday (January 13) in Asian markets, continuing last Friday's rise on market expectations that the United States will strengthen its measures. sanctions on Russia's oil industry, which will result in Russian supplies in China and India coming under pressure; In addition, the nonfarm payrolls report also boosted market confidence in the growth of crude oil demand in some parts of the US and Europe also stimulated winter crude oil fuel demand.

The Biden administration on Friday imposed the broadest package of sanctions targeting Russia's oil and gas revenues, a move aimed at giving Kyiv and Trump's new team leverage to reach a peace deal in Ukraine. This move is aimed at cutting Russia's revenue to continue the war. Since the Russia-Ukraine conflict began in Russia in February 2022, the war has caused tens of thousands of casualties and reduced many cities to rubble.

Ukrainian President Zelensky posted on X that the measures announced last Friday would "deal a big blow" to Moscow. He added that "The less money Russia gets from oil... the sooner peace will be restored."

US job growth unexpectedly accelerated in December, the unemployment rate fell to 4.1% and a stable labor market at the end of the year will boost crude oil demand.

Friday's closely watched Labor Department jobs report also showed fewer long-term unemployed people in December and the average length of unemployment shortened. Increases in these indicators have previously raised concerns about a labor market downturn.
December employment rose 256,000, the most since March. Data for October and November were revised to show 8,000 fewer jobs were added than previously reported.
The unemployment rate decreased from 4.2% in November. The average unemployment rate last year was 4.0% and in 2023 it will be 3.6%. In Friday's report, the government also released revisions to the past five years of seasonally adjusted household survey data, from which the unemployment rate is calculated.

With last Friday's jobs data settling in, this week will see a lot of US data and statements from Federal Reserve officials. US President-elect Donald Trump's team is expected to make many comments before the inauguration ceremony on January 20. China's trade data, economic activity and GDP will also be the focus of the market in general and the Crude Oil market in particular.

On the daily chart, USOIL continues its uptrend after breaking through the rising price channel noticed by readers in the previous issue. And currently the upward momentum is limited by the 0.618% Fibonacci retracement level, once WTI crude oil breaks above this level it can continue to increase further with the target then around 82.75USD in the short term.
However, the Relative Strength Index shows that the RSI is operating in the overbought area, which is a signal that there is not much room for price increases ahead, and also signals a possible downward correction. happen.
However, the technical outlook for WTI crude oil is currently bullish with support from the trend price channel, EMA21 and the nearest support level at the 0.50% Fibonacci retracement.

As long as WTI crude oil remains above the price channel and EMA21, any price declines should only be considered short-term corrections, notable levels will also be listed as follows.
Support: 76.33 – 75.20 – 74.61USD
Resistance: 78.98USD