WTI bulls looking to step up to the plate at key support

Oil prices had climbed to multi-week peaks of late as more countries across the globe opened their borders to travellers, improving the demand outlook for petrol and jet fuel. However, WTI is trading at $64.97 and down some 0.4% at the time of writing, giving back gains made in prior sessions and extending the overnight business to the downside. WTI was ending the day down some 1.25% following a drop from the highs of $66.73 to a low of $64.95.

Also, US oil futures on Wednesday slipped and crude for June delivery lost 6 cents, or nearly 0.1%, to settle at $65.63 a barrel on the New York Mercantile Exchange. Prices traded as high as $66.76, the highest front-month intraday level since March.

Overall, improved vaccine rollouts in the US and easing restrictions on travel have also contributed to optimism over European fuel demand.

India’s hospitals remain overwhelmed by cases, exacerbated by a dearth of public health resources, including oxygen. 

Overnight, the US data was showing the biggest weekly drop in domestic crude supplies since January.  

The EIA reported a weekly 8 million-barrel drop in US crude supplies.

WTI price analysis

Bears are all over the prior resistance on the 4-hour time frame in an otherwise bullish environment.

The correction from the highs on the daily chart may still dominate for the day ahead until demand drives WTI fresh highs in a new bullish impulse from the support block in the dominant bullish trend.