Oil capturing more ground in Asia trading, WTI eyes 62.50
|- Oil stretching to continue bullish correction.
- US output remains high, but oil has shaken this off.
Crude oil prices are resuming the previous fledgling upwards trend, lifting in Asia markets with WTI nearing 62.40 and Brent trading at 65.35, as of writing.
Despite the recent selloff in commodities and equities, thanks to a souring of market risk appetite in the face of a rising interest yield environment for the first time in a decade, crude oil has managed to stage a comeback, with the commodity higher for that last three consecutive trading days, and looking to make it a fourth early in the week.
After the dramatic risk-based slide in oil prices, WTI and Brent have both recouped roughly half of the declines, though the technical traders will note this is also the 50.0 Fibo retrace territory, so the downside risk still remains for the liquid commodity. The US is still pumping record amounts of oil into the global market, and OPEC is still powerless to do anything about it.
Crude Technicals
The recent pullback priced in a bottom at 62.50 for Brent and 59.00 for WTI, and Brent will soon run into resistance from the 34-day EMA at 66.25 soon, while WTI is currently trading over the 34-day EMA at 62.00, and will be looking for a decisive capture-and-close of the region to continue pushing higher.
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