August crude oil has continued last Friday’s big move higher this week up through resistance at 72.50 to new highs today of 74.43, the highest level in three and a half years. The market trended higher, driven by bullish fundamentals. US crude oil production continues to increase as inventories decline from rising seasonal demand usage and more US oil being exported internationally. More support is given to the market with possible supply concerns in both Libya and Canada as well as pressure from the US to limit Iranian oil supply. The US dollar is pulling back today off of new highs this week also provides support to the energy sector. Although supply and demand fundamentals are supportive of this run higher in crude oil, momentum studies are at overbought levels. Resistance comes in just over the 75 level with support at 72.39 and 70.28. Trade down under 73.20 would reverse the trend back to support levels.

Crude Oil Aug ’18 Daily Chart