Oil prices continue to rise on brighter demand outlook

WTI oil price rose further on Thursday, extending gains above psychological $80 barrier and looking for the first daily close above this level since Nov 6.

Near-term bullish sentiment improved after the latest International Energy Agency’s report showed an upward revision to demand growth forecasts and cut in 2024 supply forecast.

The data brightened oil’s near-term outlook and provided fresh tailwind to oil’s prices which rally for the second consecutive day and pressure key barriers at $80.83/$81.3 (2024 high od Mar 1 / 50% retracement of $95.00/$67.70 downtrend).

Technical studies on daily chart show strengthening positive momentum and moving averages in full bullish setup, which adds to bullish outlook.

Daily close above $80 to generate initial bullish signal, with sustained break above $80.83/$81.35 to confirm bullish continuation and unmask target at $84.57 (Fibo 61.8%).

Broken $80 level now offers immediate support, with dips to ideally find ground above rising 10DMA ($78.91).

Caution on failure to close above $80 which would signal extended sideways mode.

Res: 80.83; 81.35; 82.00; 82.21
Sup: 80.00; 79.55; 78.91; 78.20