Oil stays in the hunt of a tenth consecutive weekly gain


WTI is up 0.7% on the day to $84.30 levels with the high earlier touching $84.76 as gains continue to stay the course in the oil market.

As much as there have been a few hiccups over the past few weeks, dip buyers have been quick to reassert themselves and that is keeping the upside momentum intact.

There might be scope for a sharp correction after the run of gains (nine straight weeks coming into today) as the buying gets a little stretched. However, there isn't much standing in the way of a technical push towards $100 from here to be fair.

That being said, I would argue that the best approach is to tread with caution but with a bias still searching for more upside in oil prices in the coming weeks.

Tight supply amid a frigid winter will continue to underpin energy prices in general and with OPEC+ still not shaking things up yet, the more robust fundamental outlook going into next year is holding.

If anything, I'd be wary of any outsized upside moves during the week as that could prompt some profit-taking activity shortly - which may see some unwinding of longs after the gains over the past few weeks, especially if risk conditions are iffy too.