Crude oil was 0.35% higher on Thursday with WTI pushing the $46.00 resistance level. The price of oil could continue higher if risk markets stay strong into year-end.
Oil traders were slightly disappointed by last week’s OPEC meeting where a supply increase of 500k barrels per day was implemented. The token raise took the steam out of the oil price but the market is still being supported as the U.S. dollar continues its decline.
Oil prices also shrugged off a big rise in oil inventories and this is another sign that bulls are in charge. The EIA reported a 15 million barrel increase in its latest weekly report. The rise was the biggest since April but traders are still hopeful that vaccines can roll out at a strong enough pace to boost growth and oil demand.
Crude Oil Technical Outlook
Crude oil is holding support and is testing the $46.00 resistance level. If the contract can get above here then a run to $50.00 is possible. Support is at the $44.00 level. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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Crude Oil Daily Chart
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