WTI surges above $84.00 as USD reaps gains

WTI US crude oil rises during the New York session, trading at $84.30. The market sentiment has remained positive as U. S. shares are supported by U. S. Q3 solid corporate earnings, which helped ease investors’ nervousness around high inflation and central bank monetary policy tightening.

In the meantime, the US Dollar Index, whose price influences commodity prices, is rising 0.18%, settling at 93.98.

Crude oil prices remain at the disposal of the OPEC+ and the increasing demand for energy while the global crisis gets worse.

On Tuesday, Amin Nasser, CEO of Saudi Aramco, said that capacity worldwide is dropping quickly, and companies need to invest more in production.

Nasser added that if the pandemic eases as expected and more people flock to air flights and travel, the supply deficit could get worse in 2022.

Despite the abovementioned, OPEC+ adheres to the 400,000 daily output increase every month. The group led by Russia and Saudi Arabia will meet on 4 November to decide whether to keep or change the strategy.
Aramco CEO’s comments come as the U. S., among other countries, has called OPEC+ to increase the current output.

WTI’s upward move is overextended, portrayed by the Relative Strength Index (RSI), which is at 74 and has remained at overbought levels since 11 October, showing no signs to move lower.

The daily moving averages remain well below the price, with an upward slope, supporting the upward bias. A sustained upside break above $84.00 could open the way for a $91.00 challenge, but crude oil dynamics also lie in fundamental developments.

The first resistance level would be $85.00, subsequently followed by $86.00. In case of a correction lower, the first meaningful support level would be the July 6 high at $77.00.