Oil powers ahead, closes in on July high

Technical Analysis

Author: Justin Low | oil

WTI crude up 1.5% to $76.50 levels on the day

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The energy crisis hype is continuing to feed the beast in the oil market as prices climb further on the week, with WTI up another 1.5% today to $76.50 levels. That is seeing price gravitate towards its July high @ $76.98 and that will be a key resistance level to watch.

A firm break above that paves the way towards $80 next with little resistance seen standing in the way. Here's a look at the monthly chart:

If you go by that, suddenly a surge to $100 doesn't look out of the question.

The global energy crisis is a key focus driving markets at the moment and we're not even in winter yet. But already the power crunch is highlighting the supply-demand imbalance that may take many months to restore, especially if it is going to be a frigid winter.

Here is a look at nat gas today, which has gone nutty as it surges above $6:

The parabolic move may still have some ways to go and if that is the case, oil also looks set for a stronger break to the upside even after the gains in the past week.

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