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WTI bulls back in charge but bears lurking at resistance

  • Oil bulls could be running out of steam soon.
  • Bears looking for a 61.8% Fibonacci retracement. 

WTI is currently trading 0.2% higher on the day after a strong performance on Wednesday after the US distillate inventories posted a large drawdown.

Refiners also ramped up activity to the highest in over a year, boosting hopes for rising fuel demand in the world's top oil consumer.

Meanwhile, the Federal Reserve was a distraction for the New York afternoon before WTI ended near 0.90% higher following a rally from the low of $62.70 to a high of $64.49.

The US dollar was helping the commodity complex along after Federal Reserve's chair, Jerome Powell took any possibility of an early taper off the table. 

Meanwhile, oil remains bid following the news from OPEC+ on Tuesday that decided to stick to plans for a phased easing of oil production restrictions from May to July.

Traders took the view that the Indian covid crisis will be temporary and have preferred to remain bullish on the EU’s pick up in the vaccine roll out and a general global economic recovery. 

WTI technical analysis

There is a W-formation on the daily chart and the 62.41 old resistance could come under pressure first prior to the next drive to the upside. 

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