[WTI Crude Oil Strategy] Gas Supply Disruptions Push Oil Prices Higher

Fundamental Analysis:
U.S. API crude oil inventories recorded a third consecutive weekly decline as of early yesterday, while official EIA crude oil inventories have now fallen for five weeks in a row. This reflects strong short-term demand for U.S. crude, driven by an unusually cold winter that has pushed natural gas prices to a two-year high and supported rising oil prices. Additionally, Bloomberg reported that Europe’s energy costs have surged, with electricity prices exceeding €1,000 due to insufficient wind power and high natural gas generation costs. As a result, markets are leaning towards fuel oil for heating. Adding to the energy strain, Russia's natural gas supply to Europe via Ukraine is set to cease by 2025, exacerbating Europe's energy demand and further boosting short-term oil price expectations.

Technical Analysis:
On the hourly Bollinger Bands chart, WTI crude rebounded sharply from the lower band, hitting new intraday highs and maintaining an upward channel. This indicates that the bullish trend remains intact, suggesting an opportunity for those without positions to consider entering long positions at short-term support levels.

Trading Recommendation:
Enter a long position on WTI crude at 71.53 on a pullback, with a target of 72.80 and a stop-loss at 70.70.

Support Level: 70.72
Resistance Level: 72.80

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