- Upbeat analysts’ oil-price forecasts, weaker USD keep sentiment buoyant.
- WTI on track to book the 3rd straight weekly rise, as fundamentals remain supportive.
The bullish momentum around WTI (oil futures on NYMEX) extended into Europe, with the rates now printing fresh four-year tops above $ 72 mark.
The barrel of WTI reached the highest levels since December 2014 as the bulls continue to cheer the prospects of tightening global supplies, with geopolitical tensions surrounding the Iran deal intensify.
The sentiment around the black gold remains underpinned, as most major investment banks upped their oil-price forecasts for the coming years, citing soaring crude oil demand. Analysts at ANZ added that the falling US crude stockpiles were "raising concerns of tight markets heading into the U.S. driving season," during which demand typically rises.
The latest EIA crude stockpiles report released on Wednesday showed that the US crude inventories fell 1.4 million barrels in the week to May 11, compared with analysts’ expectations for a decrease of 763,000 barrels, as cited by Reuters.
Meanwhile, broad-based US dollar weakness will help keep the buoyant tone intact around the prices, as the focus shifts towards the US rigs count data due tomorrow.
WTI Technical Levels
According to Slobodan Drvenica, Information & Analysis Manager at Windsor Brokers, “Overall structure remains bullish and tensions in the Middle East maintains positive sentiment, but the fresh strength of the dollar could weigh on oil price. Rising 10SMA continues to track the advance and marks strong support at $70.45 (along with Monday’s correction low at $70.25) which is expected to hold and keep bulls intact.
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