- WTI ended the New York day higher by over 2.9%.
- The combination of demand expectations, stockpiles and Iran headlines boosted oil overnight.
A weaker USD boosted its appeal of commodities among investors and for oil in particular, negotiations between the United States to the Iran nuclear accord have been suspended following the election of hardliner Ebrahim Raisi in Iran's presidential elections.
West Texas Intermediate (WTI) crude oil rallied to a new 32-month high on Monday while rising expectations of further declines in inventories also boosted sentiment.
WTI crude for July delivery settled up US$2.02 to US$73.66 per barrel, Marketwatch reported. August Brent crude, the global benchmark, was last seen up US$1.30 to US$74.81.
On a spot basis, WTI ended the New York day higher by over 2.9% after rallying from a low of $71.17 and to a high of $73.94bbls.
Meanwhile, a Bloomberg survey that was released has suggested that the market is expecting stockpiles fell by 4,386kbbls last week.
''Data-provider Genscape reported a 2.6mbbl drop in stockpiles at Cushing, Oklahoma. Inventories there are already at their lowest level since March 2020. This is being driven by strong travel data,'' analysts at ANZ bank said.
The combination of demand expectations and the prospects whereby otherwise, successful talks could see the return of a million barrels per day or more of Iranian exports to the world markets, has supported the price at the start of the week.
WTI technical analysis
Technically, bulls have moved in on the dynamic counter trendline which has subsequently buckled.
In doing so, the price is above the old resistance of 72.96.
This old resistance would now be expected to act as support.
On the upside, bulls will have their eyes on the psychological $75 level. On the downside, another test of 70 opens risk to the early summer highs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.