OPEC Fuels Biggest Oil Rally Since 2009

posted in: Charts, crude oil | 0

WTI crude oil futures are in the process of posting their largest 3-day rally since early 2009. Crude futures are now up ~22% since early Thursday morning’s lows:

 

WTI_four_hour

This morning’s powerful bullish reversal from below $44/barrel to over $48/barrel has been fueled by rumblings that OPEC may be ready to take action in order to help “the¬†oil market to achieve equilibrium with fair and reasonable prices.”

The last time that crude oil posted such gains within such a short time span was back in February 2009 when oil had just bottomed near $33/barrel and quickly rose back above $40/barrel, not too dissimilar to the current scenario:

 

WTI_2009

The $48-$50/barrel area should offer some resistance on the way up just as it served as support on the way down. This morning’s low ($43.60) also happened to occur near an important area of previous support dating back to early in the year – this level now becomes major support going forward.