Oil Prices Rally to 70‑Day Peaks as OPEC+ Tightens the Knob
Feathered with fresh supply cuts from Saudi Arabia and Russia, crude is blasting back up faster than a cat on a hot tin roof. West Texas Intermediate (WTI) peered around $83.25 a barrel, while Brent was flirting with $86.63. That’s the high score reached near 12:30 am GMT.
Why the Market is Strutting Its Stuff
- OPEC+ Action. Saudi Arabia pledged a 1 million barrel‑per‑day cut in September; Russia a 300,000 barrel drop — a hush hush from the big six.
- Black Sea Scramble. Russian naval antics disrupted the Novorossiysk port, cutting about 2 % of the world’s crude flow.
- Supply Tightens. With fewer barrels on the road, prices are getting a nice squeeze.
What’s the Mood on the Market?
Oil’s shooting up, but the rally could stall if the sweet spot is hit. Market watchers are eyeing two big things:
- China’s plans to give the private sector a boost, hoping to fend off a dip in demand.
- Data on the global economy — the U.S. CPI for July, the Energy Information Administration’s outlook, and a quick look at Britain’s GDP for Q2.
“If Canada’s inflation looks steamy, the U.S. dollar might jump and give oil a hard time,” some analysts say. Conversely, a calm CPI could keep the dollar languishing and give oil a cushion.
Technical Check‑in on the Barrel
Picture the price glide on a 2‑hour timeline:
- Resistance Zone. Currently hanging around $86.80–$85.94 — or the big dynamic support line.
- A break and deep consolidation above that zone could shimmy buyers onto the next sweet spot between $89.33 and $88.58.
- Should the price stay in the red, sellers might push it toward the dynamic support of $81.69–$81.32 and then to the old 200‑day simple moving average of $78.17–$77.16.
Bottom Line: Oil is on a swing ride!
With OPEC+ and Russia tightening, the oil market is leaning toward a near‑future climb. It’s a classic money‑in‑the‐bank scenario: decline in supply raises price, but a dip in demand or a stronger dollar could make those gains a quick escape into the clouds. Keep an eye on the market’s next move, and ready your coffee — it’s going to be a wild one!
