WTI down 0.8% to $82.75
The price hit a high of $84.25 overnight, the highest since October 2014, before seeing a retreat over the past few hours to be down 0.8% to $82.75 currently.
One can argue that a firmer dollar is perhaps providing some scope for profit-taking but the bullish sentiment in oil is far from being put to bed.
The technical side of things also continues to highlight that buyers are not throwing in the towel just yet. We're now testing the 100-hour moving average (purple line) and keep above that, the near-term bias remains more bullish.
But break below and there is some scope for a pullback towards the 200-hour moving average (green line) at $81.70 next. But from a psychological perspective, as long as prices keep above $80, there is still good reason for buyers to stay buoyed.
As mentioned previously, the energy crisis this winter is still far from being over and with OPEC+ not really shaking up the supply-demand dynamics for crude output, the perceived tightness in the oil market looks set to continue over the coming months.
Unless there is a change to either sentiment, I'd expect dip buyers to still come out on top for oil at least for the time being.