Technical Analysis: USOIL

USOIL climbed to a four-and-a-half-month high

On Monday, USOIL increased by 2%. It broke above 82 at one point, which marked the highest level since November 3.

Crude oil exports decreased in Iraq and Saudi Arabia

Crude oil exports will decrease to 3.3 million barrels per day in the following months to offset the part which has been higher than the quota of OPEC+ since January, OPEC’s second largest oil producer——Iraq said. It means Iraq will cut crude oil exports by 130,000 barrels per day.

OPEC’s largest oil producer——Saudi Arabia cut oil exports for two consecutive months, decreasing oil exports from 6308 thousand barrel per day in December to 6297 thousand barrels per day in January.

US strategic petroleum reserve will be recovered 

By the end of 2024, SPR will be recovered to the level that occurred two years ago or a higher level, United States Secretary of Energy Jennifer Granholm said on Monday. This move will boost the demand for petroleum.

Technically speaking, the bullish market trend prevailed

the Chart of the Day

On the chart of the day, USOIL increased greatly yesterday. The bullish market trend prevailed in the short term. In terms of technical indicators, MACD went upwards after golden cross occurred, showing USOIL will rise further. USOIL will jump further with potential resistance at 85.5 if it breaks above the resistance at 83.3.

4-hour chart

On the 4-hour chart, USOIL was prone to fluctuation and climbed. The bullish market trend prevailed. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing the market trend is bullish. USOIL will rise further it it retreats but is stable above the support at 81.0.

Key resistance: 83.3, 85.3

Key support: 81.0, 80.0

Generally speaking, as crude oil exports decreased in Iraq and Saudi Arabia, and the demand for petroleum is expected to rise in the US, USOIL is more likely to rise further in the short term.