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Western Texas Intermediate has advanced by 2.66% during the New York session, exacerbated by thin trading liquidity conditions.
The market sentiment is positive despite the Omicron variant worldwide outbreak. Tilted to the upside, though a break above the 50-DMA would open the path towards USD 79.00.
Western Texas Intermediate, also known as WTI, US crude oil benchmark, surged during the New York session, trading at USD 75.74.
A risk-on market mood keeps US equities and the black-gold advancing, despite the spread of the newly discovered Covid-19 variant called Omicron, which spurred the cancellation of flights on the Christmas weekend due to staff quarantine and shortages.
In the overnight session, WTI remained subdued around the USD 72.55-USD 73.50 range. In the last couple of hours, a spike of USD 2.5 is mainly attributed to thin liquidity trading conditions, which usually exacerbate any moves in the financial markets.
The WTI daily chart depicts the black-gold has an upward bias. Through the day, oil pierced the 100-day moving average (DMA), leaving exposed the 50-DMA at USD 76.69.
The upward move was capped around the USD 76.00 figure, retreating some USD 0.25 to the current price.
To the upside, the first resistance would be the USD 76.00 threshold. A breach of the latter would expose the 50-DMA at USD 76.69, followed by the November 24 cycle high at USD 79.19.
On the other hand, the first support would be the USD 75.00 psychological level. A decisive break of that level would expose the 100-DMA at USD 74.18, followed by USD 74.00.
