Crude oil settles at $70.10

The price of crude oil is settling up $1.35 or 1.96% and $70.10. The high price today reached $70.38 while the low price was at $68.86.

• Geopolitical Tensions:

  • Russia and Ukraine war remains a geopolitical risk for oil traders. Russia allegedly launched an intercontinental missile at Ukraine’s Dnipro following Ukraine’s first attack on Russian territory using foreign-supplied missiles.
  • Heightened geopolitical risks are adding a premium to oil prices.

• Supply and Demand Outlook:

  • Rising U.S. oil inventories, weak Chinese demand, and higher Western Hemisphere production are expected to push supply above demand by 2025.
  • OPEC+ may delay unwinding 2.2 million bpd voluntary supply cuts, originally scheduled to start in January, depending on market conditions.

Technically, the price bounced off the 100 hour MA on the dip yesterday. That gave the buyers the go-ahead to push the price higher.

ON the topside, the $70.55 is the next target followed by the 38.2% of the move down from the November high at $71.09.

This article was written by Greg Michalowski at www.forexlive.com.