WTI re-takes $ 60.50 ahead of API?
- Headed to mid-2015 tops?
- Gains capped by USD recovery, rising output concerns.
- The US API crude stockpiles report eyed.
WTI (oil futures on NYMEX) extends its consolidative mode near mid-2015 highs into a second day today, as the bulls gather pace for the next move higher ahead of the US API crude inventory report due out later today.
WTI holds above $ 60 mark
The barrel of WTI found support just ahead of the $ 60 threshold and staged a minor bounce in a bid to regain 60.50 levels. However, further recovery looks capped amid rising US and Russian production levels.
Despite the stalled upside, the prices are still not far off the $60.74 mid-2015 highs reached yesterday, in the wake of the continuation of the Iranian unrest. Reuters reported that anti-government protesters demonstrated in Iran on Sunday in defiance of a warning by authorities of a crackdown.
Also, the resurgence of oil supplies into the markets due to the restart of the Forties pipeline and the resumption of production following a pipeline outage in Libya also weighs down on the sentiment around oil. At the time of writing, WTI rises +0.17% to $ 60.47 while Brent trades +0.20% higher near $ 66.70.
WTI Technical Levels
The resistances are aligned at $60.73 (2-1/2 year tops) ahead of $61 (psychological levels) and $61.82 (June 2015 tops). On the downside, supports are located at $60.29/28 (5-DMA/ daily low), $59.65 (10-DMA) and $58.50 (20-DMA).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
