Crude oil futures settled at $68.45, up $1.88 or 2.82% on the day. For the week, prices gained $2.13, marking a 3.2% increase. These gains come despite an unexpected rise in OPEC+ production of 548K barrels heading into the week. However, some support emerged midweek when OPEC+ floated the idea of pausing upcoming output hikes, signaling a more cautious stance.
Running counter to the price action was a surprise build of 7 million barrels in U.S. crude inventories reported by the EIA. While that would normally be bearish, the report also showed drawdowns in gasoline and distillate stocks, providing a more balanced outlook. Adding to the upside momentum were headlines surrounding Russian sanctions, with former President Trump announcing plans to make a major statement on Russia next Monday.
From a technical perspective, the move higher pushed oil prices above the 200-day moving average at $68.35. Notably, during the last three sessions, crude had traded above that level intraday but failed to close above it. Today, however, the market closed near the highs, positioning oil to end the week firmly above the 200-day MA—a bullish signal heading into next week.
This article was written by Greg Michalowski at www.forexlive.com.