WTI outlook: Crude Oil rises further on supply concerns, key barriers come under pressure

WTI 

WTI oil price continues to trend higher for the sixth consecutive day and hit the highest in three weeks on Wednesday.

Stronger than expected drop in US crude stocks last week (API report) contributed to the latest acceleration higher, as oil remains supported by growing concerns about potential supply shortage, following a threat from the US of imposing sanctions to those buying oil from Venezuela, with China being top buyer of Venezuelan oil.

The recent new round of US sanctions on Iran’s oil sales, further complicated the situation, as China is also the biggest buyer of crude oil from Iran.

Decision of OPEC+ to further rise output from May and positive signals from peace talks between Russia, US and Ukraine, would partially offset bullish signals and likely limit current rally.

Bulls pressure psychological $70 resistance and eye also significant barriers at $70.70 zone (Fibo 38.2% of $79.35/$65.22 downtrend / 100DMA), where stronger headwinds could be expected, as daily studies are overbought, and indicators are currently providing mixed signals.

Fundamentals are expected to remain the strongest driver of oil prices, with focus on US tariffs and sanctions, which are likely to play a key role.

Violation of $70.00/70 zone to generate stronger bullish signal and open way for further rise of oil prices, while failure here would be an initial negative signal, which would need verification on drop below $68.55/00 zone (broken Fibo level / converged 10/20DMA’s.

Res: 70.00; 70.70; 71.00; 71.34.
Sup: 69.05; 68.55; 68.00; 67.79.

Interested in WTI technicals? Check out the key levels