WTI back on the bids above $ 61.50, API data eyed
- Risk-recovery drives oil higher, relentless rise in US output ignored?
- Manages to keep the 61 handle ahead of the US API stockpiles data.
WTI (oil futures on NYMEX) caught a fresh bid-wave last hour, as the bulls regained momentum amid an improvement in risk condition, reflected by positive European equities and higher Treasury yields.
Moreover, the barrel of WTI received a fresh boost, as the US dollar stalled its recovery-mode and entered into a consolidative mode, with attention now turning towards the highly-influential US inflation data due later at 1230 GMT.
However, it remains to be seen if the prices can sustain the renewed uptick amid looming concerns over a relentless rise in the US oil production. The US output levels soared past 10 million barrels per day (bpd) in late 2017, overtaking output by top exporter Saudi Arabia.
Looking ahead, markets await the US CPI data and API crude inventories report for fresh momentum on the black gold.
WTI Technicals
At $ 61.61, the resistances are aligned at $ 62.09 (20-DMA), $ 62.45 (Fib R2) and $ 62.81 (50-DMA). On the flipside, the supports are located at $ 61 (round number), $ 60.80 (100-DMA) and $ 60.50 (psychological levels).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
