Futures on US West Texas Intermediate Crude Oil eased from recent more than seven-year highs on Thursday, as market players took profits after a month-long price surge.
Still, robust demand and short-term supply disruptions continued to provide certain support to the market.
“The International Energy Agency said global oil demand is on track to hit pre-pandemic levels,” ANZ bank analysts wrote in an investor note.
Analysts and OPEC officials expect the oil price rally to continue during the upcoming several months, while the black liquid could even exceed $100 per barrel as global demand disregards the Omicron spread.
“Shorter-term supply disruptions are also helping tighten markets. Brent crude rallied sharply after reports a key oil pipeline running from Iraq to Turkey was knocked out by an explosion,” ANZ analysts noted.
Turkish officials, however, said on Wednesday that the flow of crude oil through the Kirkuk-Ceyhan pipeline had been brought back to normal following a halt on Tuesday.
Supply concerns were also stoked after an attack on the United Arab Emirates, the third-largest oil producer in OPEC, by Yemen’s Houthi group.
Additionally, the large Russian military build-up near Ukraine’s border has raised concerns of invasion and potential supply-related uncertainty.
As of 9:57 GMT on Thursday WTI Crude Oil Futures were retreating 0.54% to trade at $85.34 per barrel. Yesterday the black liquid rose as high as $86.79 per barrel, which has been its strongest price level since October 9th 2014 ($87.95 per barrel).
At the same time, Brent Oil Futures were edging up 0.32% on the day to trade at $87.86 per barrel. Yesterday the commodity rose as high as $89.12 per barrel, which has been its strongest price level since October 13th 2014 ($89.31 per barrel).
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $85.86
R1 – $86.73
R2 – $87.66
R3 – $88.53
R4 – $89.40
S1 – $84.93
S2 – $84.06
S3 – $83.13
S4 – $82.20
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $88.09
R1 – $88.61
R2 – $89.63
R3 – $90.15
R4 – $90.66
S1 – $87.07
S2 – $86.55
S3 – $85.53
S4 – $84.50