WTI Soars, ADX Suggests This Bull Wave Only Getting Started

WTI/USD has crashed through 5 year highs at 76.88, and is now trading nearly $6 above the previous high. The RSI is now trading in overextended levels, however the ADX is just starting to tick upwards, suggesting that this bull wave may just be getting started. These prices are uncharted for 5+ years, but looking at last time price traded through these prices it did so with relative ease. It stands to reason that with global energy shortages we will see WTI/USD hit 100.00 by the end of the year.

  • WTI Futures climbed to $83.18 at their highest since October 2014.
  • Brent Crude Oil futures hit $84.45, their highest since October 2018.
  • Both contracts rose more than 3% last week.

WTI 1D Chart, 19 October, 2021.

Why Oil Demand Is So High Right Now

Oil demand has increased in the last few months due to high natural gas and coal prices, encouraging energy generators to switch to fuel oil and diesel for power generation. Easing Covid-19 restrictions globally are also pumping oil prices up, combined with anticipation for cold weather in the Northern Hemisphere during winter months.