Crude oil price rises further on growing supply concerns

WTI oil price rose further in early Thursday’s trading, in extension of 3.5% rally on Wednesday, the biggest daily gain since Nov 17.

Worsening fundamentals on closure of one of the largest oil fields in Libya and increased tensions around Israel-Palestine war, inflated oil price.

Stronger than expected fall in US crude inventories (API report, released late Wednesday) additionally supported oil prices.

Technical picture on daily chart has improved, following a bear trap under $70 level and subsequent bounce that left a bullish engulfing pattern and rose above daily MA’s (10,20,30), retracing so far over 61.8% of $76.16/$69.27 bear-leg).

Strong bullish momentum and north-heading RSI add to positive near-term outlook.

Bulls eye Fibo barrier at $74.53 (76.4% of $76.16/$69.27), ahead of key near-term resistance at $76.16 (Dec 26 high), violation of which would generate initial reversal signal.

Daily close above broken 10DMA ($73.10) is needed to keep fresh bulls in play.

Res: 74.00; 74.53; 75.36; 76.16
Sup: 73.53; 73.10; 72.72; 72.10