WTI bounces off lows near $63.50

Prices of the WTI find support in the mid-$63.00s.
WTI recovers ground ahead of weekly reports on supply.
The OPEC meeting will be in centre stage on Friday.

Prices of the barrel of the West Texas Intermediate are rebounding from the area of $63.50 at the beginning of the week, reclaiming already more than $2 to levels beyond the $65.00 mark.

WTI looks to data, OPEC

After recording fresh 2-month lows in the vicinity of $63.50 in early trade, prices of the American benchmark for the sweet light crude oil have recovered the $65.00 mark and are now clinching fresh tops in the $65.30 region.

Traders have managed to leave behind a negative start of the session always on the back of rising concerns over the possibility that the OPEC+ could decide to boost the cartel’s production at its meeting on Friday in Vienna. Headlines and developments in this regard remain poised to drive crude’s price action ahead in the week.

Another driver playing out this week around crude oil prices remain the US-China trade conflict, which recently saw the US imposing $50 billion worth tariffs on Chinese products and China’s retaliatory measures, including $25 billion tariffs on over 650 US products.

Later in the week and other than the OPEC gathering, the API and the EIA will publish its weekly reports on US crude oil supplies.

On the positioning front, oil speculative net longs climbed to 2-week tops in the week ended on June 5, as per the latest CFTC report.

WTI significant levels

At the moment the barrel of WTI is up 1.40% at $65.22 facing the next resistance at $67.14 (high Jun.14) followed by $67.19 (21-day sma) and then $68.55 (high May 30). On the other hand, a breach of $63.59 (low Jun.18) would aim for $61.77 (low Apr.6) and finally $60.03 (monthly low Mar.8).

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