Crude oil is about to end another week in green, as a barrel of West Texas Intermediate rose as high as $72.78. Despite anticipations of tighter supply, thanks to Iran sanctions and shrinking output in Venezuela, crude prices have tread water since Tuesday. The $71.45 – $72.75 range is holding: traders don’t know where to stand. There is growing sentiment that crude is heading towards $100. The US government said it won’t release emergency crude reserves to keep prices low.
From a technical standpoint, the WTI is still trading in its long-term and short-term uptrend channel. On the downside, a short-term support lies around $72.15, while a medium-term one can be found at $69 (50-day moving average). In absence of a vocal intervention from The Donald, investors will stay side-lined ahead of the weekend – range trading will dominate.
By Arnaud Masset