Oil prices went out today to the highest level since March, after words from representatives of the United Arab Emirates. The UAE is one of the 3 countries in OPEC that is able to realistically increase production in a very short time. Despite this, the country's representatives indicate that the possibilities of production growth in OPEC are very much limited or even impossible. In addition, the UAE is expected to claim that oil is not yet close to its peak. The optimism was not even hindered by the better-than-forecast report on US oil inventories build.
OIL.WTI is testing the 78.6 retracement, which falls at the place where we previously saw huge demand in early March. Of course, now we have again a rash of information on further price increases, but we should also keep in mind the possible exhaustion of the buyers' strength. After breaking through resistance at $121, the next likely target would be around $125. On the other hand, potential declines could head to the level of $113-$114. Source: xStation5
