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Crude oil prices surged over 9% in a single trading day, reaching $88.74 per barrel as of the latest data. This follows a 32% weekly gain, marking the largest weekly increase since 2020. The price has surpassed the April 2024 high of $87.60 and is now approaching the $90 psychological level. Technical analysis highlights key resistance levels at $92.20 (50% Fibonacci retracement) and $95 (2023 high). Traders are closely monitoring the $89.70 area, where a failed breakout could trigger a bearish correction if the price falls below the rising lower trendline. The sharp rally reflects renewed supply concerns and geopolitical tensions, which are amplifying volatility in energy markets. For traders, the $90 level represents a critical psychological barrier, with a break above it likely to attract more bullish positioning. However, the failed attempt to sustain momentum above $89.70 suggests lingering bearish pressure. The market remains in a tight range between $54.98 (2025 low) and $88.74, with Fibonacci retracement levels acting as key technical indicators. For global markets, a sustained move above $90 could reignite inflationary pressures and impact equity sectors like energy and commodities. Gulf investors should monitor the $92.20 and $95 levels, as a breakout could signal a shift in the medium-term trend. Conversely, a breakdown below $87.29 would validate a bearish scenario, potentially leading to renewed declines toward the $55 support zone.
