The price of the WTI crude oil futures are settling at $83.71 – its highest close since October 27, 2023. The price is up $0.54 or 0.77% on th day. The high price today reached $84.49. The low price was at $82.60.The gains today come after a 3.2% increase last week.
China’s Caixan Manufaturing PMI Data came in better than expected. The positive manufacturing data from China, showed expansion for the first time in six months in March, and supported the demand outlook for oil. The Caixan index came in at 51.1.
The economic challenges in the Chinese property sector, do not seem to be impacting the demand for crude oil.
Crude oil rose for the third consecutive month in March with a gain of 6.27%. That comes after a gain of 3.18% in February and a gain of 5.86% in January.
Meanwhile, OPEC and its allies have pledged to extend production cuts until the end of June, potentially tightening the supply during the summer months in the Northern Hemisphere.
Technically, the price moved above the March 19 high at $83.12 today (see chart below), and extended up to test the 61.8% retracement of the move down from the 2023 high at $84.59. The high price today fell short of that retracement level by $0.10 before rotating lower into the close.
Crude oil extended up toward the 61.8% retracement target