WTI settling back after jumping over $90.50

WTI spiked in Thursday trading, briefly retaking $90.50/bbl before settling back towards $89.50.
Crude oil gained nearly $2/bbl for the day as supply constraints keep barrel prices pinned.

Intraday prices set to continue cycling the $90 figure in the interim as analysts expect $100 in the future.

West Texas Intermediary (WTI )crude oil barrels caught another run up the charts on Thursday, spiking from the day’s low to retake a near-term high water mark. The move ran out of gas heading into the back of the trading day, and prices are currently looking for a foothold just beneath $90/bbl.

OPEC+ producers continue their intentional production drawdown, and market analysts expect crude prices to bleed upwards into the $100/bbl range in the coming months.

Supply constraints cut barrel production deep
Saudi Arabia and Russia’s 1.3 million barrel per day combined supply cuts have been extended through the end of the year, exacerbating what analysts foresee as a 2 million bpd shortfall in global oil supplies.

Global oil reserves are expected to dwindle in the coming months as governments and independent producers bleed barrels, either to help stabilize domestic fuel costs or to take advantage of rising barrel prices.

With oil barrel prices getting squeezed at the origin point, oil refiners will be scrambling to capture as much of the constrained market as possible, adding further upside pressure. Refinery profit margins are at their highest point in years, and facilities will be looking to increase their supply as much as possible as barrel prices move higher.

Intraday prices still remain below last week’s swing high above $92.00, though a bullish break of a descending trendline from that level could lend support for upside price movements.