WTI is on the bids near $63.30 as 21-day SMA holds the strength intact amid fewer catalysts
|- Break of 21-day SMA and doubts over the latest US-Iran developments depict the oil benchmark’s strength.
- Supply stats are less in favor of the buyers.
With the US-Iran tension backed break of 21-day SMA, WTI remains positive around $63.30 during the early Asian session on Friday.
The energy benchmark has little news developments to follow in recent hours after the US and Iran both signaled lesser chances of war. However, buyers kept holding their longs on doubts over the present peace.
While the US crude stock report from API and EIA showed higher than previous readings, traders may now concentrate on the weekly US rig counts data from the Baker Hughes.
The rig counts last stood at 805 with the latest trend showing depletion in the rigs.
Even if neither the US and nor Iran shows any sign of peace, they’ve recently turned down prospects of a much-anticipated war and the same might keep oil prices in check. Though, problems at Libya and other Middle East nations can still portray supply outage.
Technical Analysis
The black gold needs to clear $64.00 in order to aim for $64.80 and April month high near $66.60.
Should the quote slips beneath 21-day simple moving average (SMA) level of $63.00, $61.50 and 200-day SMA level of $60.30 gains importance as supports.
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