February 18, OctaFX – The price of crude oil was little moved in morning trading. This comes after last week’s rally that saw the commodity reach a three-year high. The reason for the rally is the perceived increase in demand coupled by supply cuts by OPEC.
At the same time, investors have already priced-in increasing supplies from the United States. On Friday, a report by Baker Hughes said that oil rigs had increased from 854 to 857. This was a continuation of a trend that started in 2016.
Crude Oil Price Technical Analysis
The price of Brent crude oil remained along the three-month high level. The XBRUSD pair is now trading at the 66.17 level. On the daily chart, the pair is trading at a price above the 21-day and 42-day exponential moving averages.
The RSI has moved closer to the overbought level of 70 while the signal line of the MACD remains above the overbought level. The pair will likely continue the upward momentum.
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