Crude oil prices on Monday reached a record high of $82.14 per barrel after hovering around $61 since August 2021 – showing a strong long-term uptrend.
The surge came as global fuel demand rebounded after a lull in demand to support economic recoveries amid power and gas shortages in economic powerhouses such as China.
Reuters reported that: “In China, where coal production had been curtailed to meet climate goals, officials have ordered more than 70 coal mines in Inner Mongolia to ramp up production by nearly 100 million tonnes or 10 per cent, as the world’s largest exporter battles its worst power shortages in years.”
CNBC reported: “Power prices have surged to record highs in recent weeks, driven by widespread energy shortages in Asia, Europe and the United States. Soaring natural gas prices have encouraged power generators to switch to oil.
“Analysts have estimated that switching from natural gas to oil could boost crude demand by anywhere from 250,000 to 750,000 barrels per day.
“In India, some states are experiencing electricity blackouts because of coal shortages. The Chinese government ordered miners to ramp up coal production as power prices surged.”
Based on technical analysis, crude oil is still enjoying a long-term uptrend, so investors should consider continuing to buy around the current price or wait to buy the first supporting price at $79.50, the second at $78 and the third at $77.50, with the stop-loss function at $75 and the take-profit at $85.50 to $90 for the long term.