West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, advance extends since the rebound from $97.40-80.
Meanwhile, elsewhere, a pending European Union ban on oil from Russia, a key supplier of crude and fuels to the bloc is anticipated to tighten global supplies further, while prolonged COVID-19 lockdowns in the world’s top crude importer, China, have also impacted the market.
Based on the technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is positive, while the Moving Average Convergence Divergence (MACD) oscillator supports a weak positive signal.
With the $106.50 level capping may see a pullback to the $102.30-55 support level in the short term. Reassess from there.