WTI crude oil refreshes intraday high near $81.32 as it cheers mildly positive market sentiment, as well as a softer US Dollar. Even so, the black gold remains within a one-week-old trading range of about $2.0 as full markets return after an extended weekend.

Above all, the OPEC+ supply cuts join improving hopes of more energy demand from the world’s largest energy consumer, namely China, to underpin WTI crude oil’s upside momentum.

Higher energy prices have been partially responsible for skyrocketing inflation, and OPEC+'s decision came as a complete shock and revived concerns not only about price pressure but also about economic growth.

The United States crude oil consolidative phase gives no signs of changing in the near term. Technical indicators are flat in intraday charts, with modest downward slopes, which only reflect the absence of buying interest but fell short of supporting a steeper decline.

The base of the range comes as a strong static support level, with a break below $79.00 favoring a downward extension towards the $75.60 area, where the pair closed on March 31. On the other hand, the pair could accelerate its advance towards $82.65, this year's high, once above the aforementioned $81.80.

Despite the latest inaction, the WTI crude oil remains firmer past the 100-DMA support near $76.80. However, a downward-sloping resistance line from December 2022, around $81.70, appears a tough nut to crack for the WTI crude oil buyers.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, which conveys that investors are awaiting a potential trigger.

Should the oil price break above April 04 high near $81.80, bulls will drive the asset towards December 01 high at $83.30 followed by October 21 high at $85.66.

$81.80 seems a tough nut to crack

Apr 11 2023