Oil Price Forecast: WTI jumps 6% toward $26 after Saudi’s Aramco raises June pricing
|- WTI bulls fighting back control amid upbeat market mood.
- Oil cheers rebound in Chinese oil demand, easing lockdowns.
- Monthly highs above $26 eyed as Aramco raises June prices.
Following a phase of consolidation around 24.50 levels, WTI (June futures on Nymex) witnesses a fresh buying spree in the Thursday’s European trading, as the bulls now look to retest the monthly highs of 26.08.
The fresh run higher is mainly in response to the latest announcement by the Saudi Arabian state oil company, Aramco. The oil giant announced that it raised most June crude pricing to Asia by $1.40 to $6.5.
The oil bulls also cheered the improvement in the risk appetite this session, as the surprise rise in the Chinese exports lifted the market mood. The upbeat Chinese trade data suggested signs of recovery in the world’s second-biggest economy, which was hit by the coronavirus pandemic. The European stocks add gains while the S&P 500 futures rally over 1.50%.
Adding further to the optimism around the black gold, the Chinese oil imports rebounded last month. China is the world’s top oil consumer. Further, hopes of a pick-up in the business and travel activity, as most major economies are seen re-opening up the lockdowns, collaborated with the upside in the oil.
WTI technical levels to watch
At the press time, the US oil jumps nearly 6% to trade at 25.40, with the next resistance seen at 26.08. A break above the latter will open doors towards the classic daily R2 at 27.72. Alternatively, any pullbacks could meet the immediate support at 24.53 (50-DMA), below which the 24 round figure is likely to be tested.
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