Author: Mr. Amar – Technical Analyst

For the year 2022 oil price has risen significantly when more than 1000 pips movement has been accumulated in total. Oil continued its climb higher this week due to the deadly air raid on major producer UAE and a vigorous consumption forecast from OPEC that left awaiting weekly US inventory data as the last piece of the demand jigsaw puzzle.

On the daily chart, can see uptrend channel is aligned with the uptrend of oil prices. The closest resistance which at $84 has been broken at the time of writing and analysts predicts it will continue to move towards the channel’s resistance which at $94 per barrel. However, the recent rally has pushed the Commodity Channel Index (CCI) into overbought territory which may potentially result in a decline in bullish momentum.

OPEC’s forecast for robust growth in world oil demand in 2022 despite the  Omicron variant and expected US interest rate hikes. Those long the market used that as further leverage in their bid to get crude to their first target of $90 a barrel and eventually beyond $100. The West Texas Intermediate (WTI) benchmark for US crude rise 1.9%, at $85 per barrel for its highest close since October 2014. Brent, the global benchmark for oil, rises 1.2%, at $87 per barrel, after a seven-year high at $88.