Crude oil price hit its highest level since late November on Thursday. In the first week of 2022, WTI and Brent futures have recorded gains of 8.10% and 7.24% respectively. The commodity is reacting to the supply concerns triggered by the unrest in Kazakhstan.
The protests experienced in the country’s western oil-rich regions follows the removal of state price caps on propane and butane. Subsequently, Russia sent its paratroopers on Thursday to end the mayhem. On the demand side, concerns over the impact of Omicron on global oil consumption have continued to ease.
Crude oil price prediction
Brent futures has extended its previous gains; edging closer to the psychologically crucial level of 85. Two-and-a-half weeks ago, the benchmark for global oil dropped below the major support zone of 70. Since then, it has risen by about 18.99%. In the current week, it has surged by 7.24%.
At the time of writing, crude oil price was up by 0.84% at 82.68. On a four-hour chart, it is trading above the 25 and 50-day exponential moving averages. Based on both the fundamentals and technicals, the commodity is likely to record further gains in the ensuing sessions.
I expect Brent oil to hover around the resistance-turn-support zone of 82.50 as the bulls gather additional momentum to reach the next target at 85. Nonetheless, crude oil price will likely experience some resistance at 84 before surging to the stated target.
On the flip side, it may pull back to 81.55. Below this level, the bulls may have to defend the support at the psychological zone of 80.