- Supply crunch indicators please energy bulls.
- Lack of physical trading may limit momentum unless breaking $64.80 upside barrier.
Despite major global markets enjoying Easter holidays, WTI is on the bids around $64.35 during early Monday. The energy benchmark grew as recent releases from the Baker Hughes becomes another data signaling supply crunch after EIA and API inventory reports registered stock draws in their latest reports.
The US oil rig counts for the week ended on April 18 dropped for the first time in three weeks to 825 from 833 as per the Baker Hughes’ weekly rig count data.
The rig counts join inventory draws from the American Petroleum Institute (API) and the Energy Information Administration (EIA) for the week ended on April 12.
In addition to supply crunch indicators, the geopolitical crisis in Libya, coupled with hard US sanctions on Iran, also favor the upside of the black gold.
With the major global markets out for Easter holidays, investors may follow price action on the electronic trading for fresh impulse.
WTI Technical Analysis
Unless clearing $64.80 upside barrier, including present month high and August 2018 lows, the energy benchmark can’t aim for $65.00 and October 23 low around $65.70.
As a result, $63.50 and an area including April 03 high and April 16 lows near $63.00 continues to gain sellers’ attention. Given the prices slid beneath $63.00, $61.90 and 200-day simple moving average (SMA) level of $61.10 may come back on the chart.
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