WTI pares some of its strong gains to highest since October
US West Texas Intermediate (WTI) crude oil prices rose on Friday’s strong move and gained further positive traction for the third straight day on Monday
The upward trajectory remained unbroken through the first half of the European session and lifted the commodity to the $77.60 area, or the highest level since October 8 in the last hour.
The US imposed tougher sanctions on Russia’s oil industry, targeting nearly 200 vessels from the so-called shadow fleet and fueling concerns about tighter supplies. Moreover, speculation that the US President-elect Donald Trump’s administration may tighten sanctions on Iranian flows in the coming months turned out to be a key factor that continued to push crude oil prices higher at the start of a new week.
Moreover, the ongoing positive momentum could be further attributed to technical buying following Friday’s acceptance above the all-important 200-day Simple Moving Average (SMA) for the first time since August 2024. That said, a slightly overbought Relative Strength Index (RSI) on the daily chart might hold bullish traders from placing fresh bets around Crude Oil prices and cap any further appreciation.
Source: FXStreet
