Oil Soars on Mounting Supply Concerns, WTI Hits 16-Week High

Oil prices are rallying, reaching their highest point since last November. West Texas Intermediate (WTI), a leading indicator for American crude, surpassed the $82 per barrel mark for the first time in months.

This surge is fueled by escalating concerns about a potential oil shortage. Despite record output from non-OPEC nations like the US, analysts predict a looming supply squeeze in the mid to long term, which could send prices even higher.

The upcoming inventory reports are under close watch by the market. The American Petroleum Institute (API) releases its weekly data on Tuesday, which is expected to reveal another decline in crude oil stockpiles, following a previous drop of 5.5 million barrels. The Energy Information Administration’s (EIA) data arrives on Wednesday and is anticipated to show a smaller decrease of around 25,000 barrels.

Technically, WTI’s breach of the $82 barrier signals a bullish trend. This follows a bounce off a prior support level near $80 per barrel. Overall, crude oil prices have jumped nearly 7.5% since their recent low below $77. Monday’s gains further strengthen the ongoing technical recovery on daily charts.