WTI Crude Breaks Out on Tightening Supplies and Seasonal Demand

WTI crude oil has broken out of its resistance levels and is showing strong upside momentum. This technical breakout is driven by tightening global supplies and rising seasonal demand, particularly as we head into the colder months of the year.

A key factor supporting this bullish trend is the decline in commercial crude inventories, which have fallen below their five-year seasonal average. OPEC+ continues to restrict supply by maintaining major production cuts, further contributing to a structural deficit in the global market.

Historically, WTI has shown a strong tendency to rally by an average of 8% to 12% over the following month when it breaks out during this period. Traders may consider targeting the next major resistance levels near $85 to $88 while keeping protective stops tight below the recent breakout zone.