Crude Oil rallies to fresh nine-week high on Monday, WTI tests $83

• WTI climbs nearly $3 per barrel amid Monday's Crude Oil surge.
• Crude rising on Middle East geopolitical tensions, fears of cross-border spillover.
• Obscure hopes for rising Crude Oil demand in the future also pressuring barrel bids.

West Texas Intermediate (WTI) US Crude Oil rose sharply on Monday, climbing nearly $2 per barrel, as energy markets found fresh bidding pressure amid ongoing Middle East geopolitical tensions and hopes that unseasonally hot temperatures across the US would bolster demand enough to eat up supply.

The Israel-Palestinian Hamas conflict continues to broil in Gaza, and Crude Oil markets are increasingly concerned that the altercation could spill over borders to drag neighboring countries that are critical to global energy production into the conflict. With Iran backing Palestinian Hamas, concerns are mounting that Israel may step too far in their campaign and cause Tehran to step into matters with military force, destabilizing global Crude Oil supply lines.

Crude Oil markets also hope that an impending increase in domestic US average temperatures will bolster fuel demand for cooling. Investors are expecting that an uptick in demand will help to sop up US Crude Oil production that continues to threaten to swamp out domestic supply lines.

Energy market expectations of future demand increases are running counter to the predictions of financial analysts, who anticipate prices to soften moving forward with one-year price forecasts expected to closely mirror recent price action.

WTI technical outlook

WTI US Crude Oil is accelerating into the high end on Monday, climbing $2 per barrel to kick off the new trading week. WTI pierced near-term technical resistance and broke into fresh nine-week peaks near $83.00. WTI has climbed nearly 15% from June’s early bottom bids near $72.50, gaining ten dollar per barrrel.

WTI is already on pace to close in the green for a fourth consecutive week, but with a long wait to Friday and a US holiday on the cards this week, there is still plenty of room for bulls to flub the bid, and send WTI back into $80.00 per barrel if momentum dried up.

WTI hourly chart

WTI daily chart