West Texas Intermediate (WTI) oil rises to a 7-year high, plus objective at US$86.00

January 19, 2022 - 4 months ago
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West Texas Intermediate (WTI), the benchmark for New York-traded crude oil, climbs into the fourth day and posts a fresh seven-year high after a key pipeline from Iraq to Turkey was hit by an explosion, taking out crucial supply to an already tight market.

This week, supply concerns mounted after Yemen’s Houthi group attacked the United Arab Emirates, escalating hostilities between the Iran-aligned group and a Saudi Arabian-led coalition.

After launching drone and missile strikes that set off explosions in fuel trucks and killed three people, the Houthi movement warned it could target more facilities, while the UAE said it reserved the right to “respond to these terrorist attacks.”

Based on the technical aspect, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is positive; however, overbought, while the Moving Average Convergence Divergence (MACD) is positive, and the ADX is trending bullish (but overheating).

With the topside target reached at $86.00-45 now puts a neutral assessment.

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