WTI Crude Oil Prices Surge Amid Supply Concerns and Cold Weather Demand

Summary:
• WTI crude oil prices surge to $76.89 amid supply fears from sanctions and cold-weather demand. Read about OPEC cuts, and market outlook here.

WTI crude oil prices are on the rise, with futures trading at $76.89 as fears of tighter supply and rising seasonal demand drive the market. The rally comes amid escalating sanctions on Russian and Iranian oil, reduced OPEC output, and surging heating oil demand caused by extreme cold weather in the U.S. and Europe.

Supply Concerns Support the Rally

Western sanctions on oil exports from Russia and Iran have decreased global supply, increasing the demand for Middle Eastern crude. Saudi Arabia has recently increased its February oil prices for Asia and Europe, representing the first rise in three months, indicating tighter market conditions.

Moreover, OPEC production statistics indicated a decrease of 120,000 barrels per day in December, mainly because the UAE surpassed its quota previously. This reduction in production has further strengthened WTI prices.

Chart Analysis: Key Levels for WTI Crude

• Immediate resistance: $78.80 – A break above this could see prices rally toward $81.64 or even $84.57.
• Support levels: $74.92 and $73.33 – If prices fall below these levels, further downside to $70.70 is possible.
• 10-day SMA: $73.33 – The recent price action above this level signals strong bullish momentum.

Outlook for WTI Crude Prices

Focusing on seasonal demand and supply limitations, WTI crude oil prices might keep rising. Traders need to keep an eye on geopolitical events, weather predictions, and forthcoming OPEC decisions for hints about the next direction in oil markets.