Crude Oil News: Defying Expectations and Surging Beyond Key Support?

As per the latest crude oil news it rose more than 2 percent on Monday as traders weighed the impact of wars in the Middle East and Ukraine and extreme cold weather in North America on supplies against a build-up in the United States Stock market increase in demand.

Israel’s offensive in Gaza and Iran-allied Houthi attacks on merchant ships continue despite US retaliation.

In addition to this crude oil news mentions that Russian energy company Novatek suspended operations at its Baltic Sea export terminal due to a fire caused by a drone attack, which has now been extinguished.

Meanwhile, National Oil Corp. of Libya and #039; said it would resume flow from Shara after a three-week break, pumping 270,000 barrels a day.

On the demand side, the IEA revised its 2024 oil demand growth forecast to 1.24 million bpd, up 180,000 bpd, citing improved economic growth and lower crude prices in the fourth quarter.

OPEC also maintained its demand growth forecast of 2.25 million bpd in 2024 and 1.85 million bpd in 2025.

Crude Oil News- Technical Outlook:

Crude oil prices managed to recover last week from a two-week low of 5910. Yesterday, prices settled at 6265, which is 2.33% higher than Friday’s close of 6106.00

Since the beginning of the month, prices have been stuck between the decisive support. of 5850 and resistance at 6280. Additionally, a set of indecisive candlesticks is a sign of indecision among oil traders.

Prices are giving strong rally from 5850 base though. In addition, crude oil is also trading above the 23.6% Fibonacci Retracement level, indicating buying activity generated at these levels. Apart from that, RSI 14 and its 9-day SMA are also giving a bullish crossover.

Therefore, in the short term, traders can move to 6035-6040 in an upside target of 6350-6450.00 with any decline.

On the downside, immediate support is at 5900, while major support remains unchanged at 5850. The price of crude oil is expect new crisp if it breaks this level.

Commodity Samachar
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