March WTI crude oil futures closed today’s oil trading session at $96.44 per barrel ending the session as a narrow spread up bar, having opened earlier at $96.04.
Trading in the oil markets has been confined once again today to a narrow range and mirroring the trading sessions of the last few days where the commodity has traded between $95 to the downside and $96.95 to the upside.
It is interesting to note however, that the low of the last six days has been testing the support platform created during the sideways congestion of early January and which, coincidentally, also marks the 200 day ma at $93.20 per barrel.
The pause in the current bullish trend for crude oil futures is to be expected given the sustained price congestion now immediately ahead. In fact, this congestion zone extends through to the psychological $100 per barrel region, beyond which clear water awaits.
Moving to the indicators, the trend on both the daily and three day charts remain bullish and with buying volumes clearly evident the outlook for oil remains positive. However, for any continuation of the current move higher the key price point is now $97 per barrel and provided we see a clear break and hold above this level, then expect to see crude oil prices prepare to attack the $100 per barrel price point in due course.
By Anna Coulling