Prices of oil have been creeping higher for quite some time, and now they have finally made the break higher, topping the strong resistance line of $55.20. The high so far has bee $55.61.
That $55.20 level capped the pair twice: in December 2016 and in February 2017. The levels we are currently seeing have last been reached in June 2015, when oil was slipping rapidly. OPEC decided not to cut production in November 2014, and that sent crude crashing back then.
The next level to watch is $56.64, a level at around May 2015, then serving as support. The next cap is at $62.70, the top of the range back then. Beyond these levels, we are back to 2014.
The ongoing curbs on production in both OPEC and non-OPEC countries contributed to the recent ascent in prices. The hurricanes that affected US production also contributed just a bit.
Will prices continue rising? A lot depends on US production. If it responds to higher prices by expanding production, these rises may be limited.
More:Â Major Turning Point In Oil?
