WTI Touches 120 USD

Brent oil went above 124 USD per barrel. In comparison, the WTI benchmark climbed toward 120 USD as the European Union opted to impose a partial embargo on Russian oil in reaction to the invasion of Ukraine, heightening inflation fears. Oil also received a lift from China's relaxation of coronavirus restrictions, boosting demand.

Later in the day, the US economic calendar will include the Housing Price Index for March, the Conference Board's Consumer Confidence figures, and the Federal Reserve Bank of Dallas' Texas Manufacturing Survey. 

In addition, US President Joe Biden and Chairman of the Federal Open Market Committee Jerome Powell will meet to discuss the economy and increasing prices.

Above rising channel

The current bullish momentum is solid, as evidenced by the recent break above the rising channel. Simultaneously, oil has managed to jump above previous swing highs in the 117 USD region. Therefore, the short-term outlook seems bullish as long as the price remains above those levels.

The next target for bulls could be expected at the current cycle highs near 128/130 USD. At this pace, it might be reached this or next week.

Alternatively, if the commodity drops below the support of 117, we could see some deterioration in price, likely leading to a decline below 115 USD in the initial reaction.