Photo by Timothy Newman on Unsplash

West Texas Intermediate crude blasted through daily resistance at $83 touching $88 per barrel today. That’s the highest level since November of 2022.

(Click on image to enlarge)

$WTIC courtesy of Stockcharts.Com, annotations by Mish

Technically speaking, there was substantial resistance at the $83 level. That level is now support.

There is resistance at the $90 level and stronger turn backs at the $93.50 level. If this rally were to fail, those are the likely spots.

Fundamentally Speaking

Fundamentally, Oil Prices Settle at 10-Month High as Saudi, Russia Extend Supply Cuts

Investors had expected Saudi Arabia and Russia to extend voluntary cuts into October, but the three-month extension was unexpected.

“This is a clear indication that oil prices trump volume (for Saudi Arabia),” said Jorge Leon, senior vice president at Rystad Energy.

“These bullish moves significantly tighten the global oil market and can only result in one thing: higher oil prices worldwide,” Leon added.

Key Points

• Brent futures settle above $90 a barrel for first time since Nov
• WTI crude oil also closes at highest since Nov
• Saudi Arabia, Russia to extend voluntary supply cuts by 3 months
• Goldman Sachs lowers expectations of U.S. recession

Strategic Oil Reserves

Wolf Richter at WolfStreet reports Crude Oil WTI Jumps to Highest since November, as SPR Gets Refilled, Saudi Arabia & Russia Extend Production Cuts

Unless rent prices take a very quick hit, the CPI will soon surge. Good luck with that.

Biden’s Green Energy Inflation Reduction Act Needs a Big Bailout Already

Meanwhile, please note Biden’s Green Energy Inflation Reduction Act Needs a Big Bailout Already

Not even 50 percent federal tax credits were enough to make Biden’s energy policy work.

The Alliance for Clean Energy NY is also requesting an average 64% price increase on 86 solar and wind projects.

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Biden’s Green Energy Inflation Reduction Act Needs a Big Bailout Already