The price of crude oil has been moving higher in 2026, with the $66 level now acting as resistance to further gains.
USOIL – Daily Chart
The USOIL price has quietly moved from the lows near $55.00 to tradejust below another test of the $66.00 level. A breakout could target the $70.00 and $76.00 levels.
A commodity bull market in metals and food products has missed out on oil futures, but the heavily bullish era may be over.
Oil prices have been rising as markets await the outcome of talks between Iran and the United States. UK Brent and US WTI crude benchmarks have risen on fears of potential disruption to oil flows through the Strait of Hormuz.
“Oil would be lower without Middle Eastern sabre-rattling,” PVM analysts said.
The US military shot down an Iranian drone last week that “aggressively” approached a US aircraft carrier in the Arabian Sea. A group of Iranian gunboats approached a tanker north of Oman, reports said. The two countries are due to hold talks in Oman on Friday, according to officials.
The Strait of Hormuz is vital for exports from Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq, with shipments largely bound for Asia. India’s imports of Russian oil slipped in January, adding to a downturn that began in December due to Western sanctions.
The US Energy Information Administration said on Wednesday that crude stocks fell last week as a tough winter storm spread through much of the country. Oil inventories fell by 3.5 million barrels to 420.3 million barrels last week, as output slid to the lowest since November 2024, the group said.
The comments are a sign that the talk of a heavy oil glut has receded and short traders will be less aggressive about the downside potential. With gold and silver taking the headlines recently, oil has remained in the background with steady gains ahead of the upcoming resistance test.
