WTI rallies above $75.00 amid a deep energy crisis

• Western Texas Intermediate is ready for its six-weekly gain.
• Oil threatens to close above $75.00 for the first time in three months.
• WTI’s technical outlook looks poised for higher prices.

Western Texas Intermediate (WTI) is advancing during the day, trading at $75.27, recording gains of 0.43% at the time of writing. WTI’s price action for the day has been up and down. However, it is threatening to close above $75.00 for the first time since June of this year, and it would be its sixth weekly gain.

Market sentiment is mixed as US stocks post gains between 0.56% and almost 1%, except for the Nasdaq Composite, barely down 0.02%. The greenback is recording losses for the second consecutive day, as the US Dollar Index is down 0.26%, clinging to 94.02.

Oil’s main driver of the last couple of days it’s the shortage of energy. According to Bloomberg, China ordered state-owned companies to secure energy supplies at all costs, as Beijing struggles with a deep power crisis. When that news hit the wires, WTI’s spiked from around $73.40 to $75.30’s. Further, rising coal and natural gas prices bolstered the prospects for higher crude oil prices. Investors’ focus turns to the OPEC+ meeting to be held the following week on October 4.

WTI Price Forecast: Technical Outlook

Daily chart

Oil is tip-toeing beyond $75.00. A daily close above that level would push prices to test $77.00 for the second time in two weeks. If oil buyers breach that level, a run towards $80.00 is on the books.

On the flip side, failure at $75.00 could pave the way for further losses. The first support would be October 1 low at $74.21. A sustained break of the latter would expose $74.00, followed by $73.12.

The Relative Strength Index is at 65, with little room to spare, in case of another leg up.

KEY ADDITIONAL LEVELS TO WATCH