WTI oil outlook: Oil price remains elevated on improved global demand outlook and weaker dollar

WTI oil

WTI oil price continue to climb for the third consecutive session and hit one-week high on Wednesday.

The monthly report from the International Energy Agency showed improved outlook for a significant rise in global oil demand in the second half of the year that boosted the sentiment, along with weaker dollar and stronger than expected draw in US crude inventories (API report, released on Tuesday.

Fresh advance cracked pivotal Fibo barrier at $61.34 (38.2% of $67.95/$57.25) and eye next key obstacle at $61.69 (daily cloud top).

A larger picture shows the price action entrenched with the range ($57.25/$62.23) and still holding within thick ascending daily cloud, as the latest move higher remains capped by rising cloud top, although the price moved into the upper side of the range.

Daily studies send mixed signals as moving averages (10/20/30/55) are in bullish setup and support the action but fading bullish momentum and stochastic breaking into overbought zone, warn of recovery stall.

Expect strong bullish signal on sustained break above the cloud which would require confirmation on lift above range top ($62.23) and $62.60 (50% retracement of $67.95/$57.25).

Converged 55/20DMA’s ($60.23) and psychological $60 level offer solid supports which need to hold and keep near-term focus shifted higher.

Investors focus on today’s release of the Energy Information Administration’s weekly crude inventories report (2.89 mln bls draw f/c vs last week’s 3.5 mln bls drop) which could further lift oil price on stronger than expected fall in crude stocks.

Res: 61.69; 62.00; 62.23; 62.60.
Sup: 61.87; 60.23; 60.00; 59.78.

Interested in WTI Oil technicals? Check out the key levels