Up $1.37 or 3.87%
The price of crude oil futures settle today at $36.81. That is up $1.37 or $3.87.
The high price for the day reached $36.89. The low extended to $35.28.
Looking at the daily chart above, the price traded at the highest level since March 11, and moved closer to the bottom of a price gap between March 6 and March 9 (weekend that Saudi Arabia increase production in its oil war with Russia). The gap runs from $41.88 to $37.64. The $37.64 level is the next upside target. Just above that is the falling 100 day moving average currently at $38.02. The price has not closed above the 100 day moving average since January 22.
The price of crude oil is rallying in response to the reopening of the global economy from the coronavirus. That should increase crude oil demand
On the supply side, after the close the private inventory data for the current week will be released by the EIA. On Wednesday the Department of Energy will release there estimates for the current week’s crude oil inventories. The expectations are for a 3.3 million barrel build. Recall from last week the inventories rose by a surprising 7.9 million barrels. Supply continues to be a problem.
Despite the supply concerns, the price continues to move higher but will have to contend with key moving average resistance on further upside momentum.