Key Points
- CL-OIL (WTI) closed at $72.34, after hitting a high of $73.13 earlier in the session.
- Brent crude trades at $76.45, posting its second straight weekly gain.
- U.S. crude stocks increased, while gasoline and distillates decline. Kazakhstan hit record oil production, despite pipeline disruptions.
CL-OIL (WTI) hit an intraday high of $73.13 before pulling back to close at $72.34, marking its first weekly gain after four straight weeks of declines. The 2% weekly increase came amid a stronger demand outlook in the U.S. and China, as well as persistent supply concerns from Russia and Kazakhstan.
Meanwhile, Brent crude (BRN1!) trades at $76.45, also recording its second consecutive weekly gain after three weeks of declines.
Technical Analysis: CL-OIL at Key Levels
Picture: Crude oil stabilizes around $72.340, with resistance at $73.13 capping upside momentum, as seen on the VT Markets app.
Crude oil closed at $72.340, edging 0.40% higher after reaching a session high of $72.745 and a low of $72.280. Price action reflects a recovery attempt but faces resistance near recent highs.
Moving averages (MA 5,10,30) show mixed signals, with short-term MAs flattening, suggesting hesitation. MACD (12,26,9) has shifted bearish, with the signal line crossing downward and histogram bars turning negative, hinting at weakening momentum. Support is established at $71.715, while resistance remains firm at $73.13.
A break above $73.13 could reinforce bullish sentiment, while sustained pressure below $72.000 may invite sellers.
Demand Growth and Supply Risks Keep Oil Prices Elevated
Global oil demand has averaged 103.4 million barrels per day (bpd) as of February 19, marking a 1.4 million bpd increase, according to JPMorgan analysts. This rise is driven by colder U.S. weather, which has boosted energy consumption, and China’s post-holiday industrial rebound, which has increased fuel demand.
Meanwhile, the Energy Information Administration (EIA) reported that U.S. crude oil inventories rose, while gasoline and distillate stockpiles declined, tightening short-term market conditions.
On the supply side, disruptions in Russia and Kazakhstan have kept oil prices supported. Caspian Pipeline Consortium (CPC) crude flows fell by 30%-40% following a Ukraine drone strike on Russian infrastructure, limiting exports.
Despite these disruptions, Kazakhstan pumped record-high oil volumes, though how the country managed to bypass logistical challenges remains unclear.
Market Outlook
CL-OIL remains supported by demand growth and supply risks–but traders will continue to watch for further EIA data, any further geopolitical developments, and Kazakhstan’s export situation to gauge near-term direction.
