Over the last week, oil has witnessed massive price volatility, and despite a lot of intra-day noise, prices really went nowhere owing to Hurricane Ida disrupting US production. Friday wasn’t that much different.
Brent crude rose by 2.13% to $72.85 on Friday, with WTI climbing 2.40% to $69.60 a barrel, canceling out Thursday’s price drops.
In Asia, oil rose once again today, driven by the North Korean cruise missile test or news that Russia is struggling to raise production to meet its OPEC+ quotas. Either way, Brent crude is 0.40% higher at $73.15, and WTI is 0.55% higher at $69.95 a barrel.
While it’s possible oil prices could unwind their gains later today, today’s rally in Asia could potentially change the technical picture.
A rise by Brent crude to $73.70 a barrel could mean the rally is targeting gains to the $76.00 a barrel area. Support for Brent crude is currently at $72.70. In the same way, should WTI rise through resistance at $70.80, its rally could extend to $74.00 a barrel in the days ahead. Support for WTI is at $69.60.
Gold is still shaky
After edging higher on Thursday, gold still continues to range between $1780.00 and $1800.00 an ounce, with a slight rise in the US dollar on Friday, pushing it 0.38% lower to $1787.50 an ounce. In Asia, gold creeps 0.23% higher to $1791.60 an ounce.
To soothe the nerves of nervous long-positions, gold needs to recapture the market and hold above $1800.00 an ounce this week.
There’s more downside ahead for gold. A daily close below $1780.00 signals further losses to $1750.00 an ounce. Should gold fail to close at that price, it could fall further as low as $1700.00 an ounce.
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