Oil prices continue to rise. Will the upward trend persist?

USOIL

Oil is trading above the support zone of $72.50, and prices are likely to rise, targeting the resistance zone of $74.50. This scenario would be invalidated if the mentioned support zone is broken to the downside.

Crude oil prices declined today after a series of gains that lasted for three consecutive sessions. Brent crude futures dropped by 0.3% to reach $76.75 per barrel, while West Texas Intermediate (WTI) crude futures fell by 0.4% to $73.04 per barrel.

This decline is primarily attributed to the American Petroleum Institute (API) report, which indicated a rise in U.S. crude oil inventories by 9.4 million barrels during the week ending on February 7. In contrast, gasoline inventories decreased by 2.51 million barrels, and distillate stockpiles declined by 590,000 barrels.

Additionally, concerns over potential U.S. tariffs impacting global economic growth and energy demand negatively affected market sentiment. However, strong refining margins helped limit price losses, as refining margins in Singapore saw a significant improvement, averaging $3 per barrel or more over the past week.

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