Crude Oil Strength Continues with a Breakout Possible
Last Updated: February 10, 2026
Market Overview
The price of crude oil has been on an upward trajectory in 2026, with the $66 level now serving as a significant resistance point for further price increases. The USOIL price has risen from lows around $55.00 and is currently testing the $66.00 mark, with potential breakout targets set at $70.00 and $76.00.
Current Market Dynamics
Despite a bullish trend in commodities such as metals and food products, oil futures have lagged behind. However, the prevailing bullish sentiment in the oil market may be shifting. Recent geopolitical tensions, particularly between Iran and the United States, have contributed to rising oil prices. Analysts from PVM noted that without the ongoing tensions in the Middle East, oil prices would likely be lower.
Geopolitical Influences
Recent military encounters, including the US military shooting down an Iranian drone near a US aircraft carrier, have heightened concerns over potential disruptions in oil supply through the critical Strait of Hormuz. This strait is essential for oil exports from several Middle Eastern countries, including Saudi Arabia, Iran, and Iraq, primarily to Asian markets.
Supply and Inventory Trends
According to the US Energy Information Administration, crude oil inventories fell by 3.5 million barrels to 420.3 million barrels last week, coinciding with a decrease in production to its lowest level since November 2024. This decline in inventory suggests that the anticipated oil glut may be diminishing, leading to a more cautious approach from short traders regarding potential downside risks.
Conclusion
As oil prices continue to rise, the market is closely monitoring the resistance level at $66.00. With geopolitical tensions and declining inventories influencing market sentiment, traders are advised to remain vigilant as the situation develops. The upcoming resistance test could be pivotal for the future direction of crude oil prices.