Oil in New York may rise toward $100 a barrel if buying interest along the two-year moving average propels prices above a range of about $98.25 to $98.35 a barrel, according to Barclays Plc.
The two-year mean is underpinning closing prices on the weekly chart at about $95.15 a barrel, Barclays analysts including Jordan Kotick, global head of technical strategy, said in a report dated yesterday. Buyers are emerging near the $95 level, signaling the market may test the $98.25 to $98.35 a barrel range, according to the report.
Oil last traded above $100 a barrel on the New York Mercantile Exchange on Sept. 14. Prices have gained 6.3 percent this year as improving economic data in the U.S. and China add to signs of a global economic recovery.
“A move above would target the $100 a barrel barrier,” Barclays said. “Buyers emerge near range lows.”
Crude in New York, which has slid from a four-month high of $98.24 on Jan. 30, stemmed its decline with a 1.4 percent gain on Feb. 11, a “key bullish day” that formed a large white candlestick on the daily chart, according to the bank.
Oil for March delivery rose 7 cents, or 0.1 percent, to $97.58 a barrel at 12:01 p.m. Singapore time in electronic trading on the New York Mercantile Exchange today.