Oil Price - January 9

[dan_s]

In London Brent closed at more than $68/bbl.

"Oil prices remain on an upward trajectory," said Carsten Fritsch, analyst at Commerzbank (DE:CBKG). "In view of sharply falling U.S. crude oil stocks and record-high compliance with the production cuts by OPEC, market participants are convinced that the market is continuing to tighten."

OPEC is cutting output by even more than it promised and the restraint is reducing oil inventories globally, a trend most visible in the United States, the world's largest and most transparent oil market. Supply reports this week from industry group American Petroleum Institute and the U.S. government's Energy Information Administration are expected to show U.S. crude stocks fell by 4.1 million barrels, an eighth week of decline.

Keep in mind that oil inventories normally build during the winter as we get ready for the big jump in demand that comes in the 2nd quarter each year.

[dan_s]

If WTI closes over $62.50 today, it takes out the last significant resistance until $70.00.

Keep in mind that it often takes several closes above a resistance level to take it out and make it a support level.