WTI crude oil (CL-OIL) extended gains for a second session on Thursday, rising to an intraday high of $80.75 before closing slightly lower at $78.75.
This marks the highest price level for WTI since July 19, driven by concerns over tight global supply and an improving demand outlook.
The rally followed a 2 million-barrel draw in U.S. crude inventories, significantly exceeding the forecasted decline of 992,000 barrels. According to the Energy Information Administration (EIA), falling imports and rising exports contributed to the sharp inventory drop, highlighting tightened market conditions.
U.S. sanctions on Russian oil producers and tankers have further constrained global supply. The sanctions are forcing Moscow’s top buyers to look elsewhere for crude, driving up shipping rates and amplifying market tightness.
Despite the price rally, OPEC+ remains cautious, with no immediate signs of a production increase. Our research desk notes that the group will likely maintain its current output curbs until further price stability is observed.
Picture: WTI Crude Oil climbs to $80.75 before retracing to $78.75, reflecting a potential consolidation phase, as seen on the VT Markets app.
Crude ended the session at 78.753, holding onto its bullish trend despite pulling back from a high of 80.753. Indicators like moving averages and MACD suggest momentum is slowing, which could mean a period of consolidation or a potential pullback.
Key levels to watch include support at 78.70 and resistance at 79.20 and 80.75. A push above current levels could reignite a rally, while a drop below support might lead to a move toward 77.50.
Traders will need to keep an eye on OPEC+ updates, signs of Chinese demand recovery, and movements in the U.S. dollar for further direction.
On the demand side, global oil consumption grew by 1.2 million barrels per day (bpd) in the first two weeks of 2025, with expectations of a further increase to 1.4 million bpd in the coming weeks. Heightened travel activity for Lunar New Year celebrations in China and major festivals in India will likely drive this uptick in demand.
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