WTI Oil maintains fresh bullish sentiment on weak dollar; remarks from Saudi Arabia
|US CRUDE OIL
WTI holds firm tone on Thursday and extends higher after strong rally on Wednesday when crude price was up 3%.
Fresh rally was sparked by EIA weekly crude stocks report which showed lower than expected build of crude inventories last week (1.84 vs forecasted build of 2.82 million barrels) and comments from Saudi Arabia, reaffirming its commitment to continue with reducing production in order to stabilize oil market, saying that would rather see an undersupplied market than end deal with OPEC and other major oil producers to reduce output.
Weaker dollar also supports oil price which bounced strongly from $58.06 zone, where a higher base has formed.
Strong recovery rally emerged above rising daily Ichimoku cloud after being stuck in the cloud for a couple of sessions and dented important barrier at $61.34 (Fibo 38.2% of $66.28/$58.06 pullback, reinforced by falling 10SMA.
Oil price started to regain traction after being under strong pressure in past two weeks, with extension and close above $61.34 pivot needed to maintain fresh bullish sentiment and generate positive signal for extension of recovery leg from $58.06 base.
Bullish scenario on repeated close above daily cloud top and firm break above $61.34 would open way for extension towards target at $62.35 (daily Kijun-sen).
Cloud top offers good support at $60.64 and is expected to contain and keep fresh bulls intact.
Res: 61.34; 61.53; 61.72; 62.35
Sup: 60.64; 60.00; 59.25; 59.00
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