WTI rebounds from lows, back above $62.00

Prices of the barrel of WTI has managed to leave behind the area of daily lows near $61.60 and reclaimed the key $62.00 mark.

WTI now looks to data

The rally in crude oil prices is extending for the fifth consecutive week today – the best positive streak since November 2017 - including fresh 5-month tops just below the $63.00 mark per barrel recorded on Wednesday.

Upbeat sentiment among traders remains well supported by recent progress in the US-China trade talks along with auspicious results from the Chinese economy in past sessions, all alleviating concerns over a potential slowdown in the Asian economy.

Prices of the West Texas Intermediate are managing at the same time to reverse the bout of selling pressure emerged late on Wednesday in the wake of the weekly build in US crude oil supplies reported by the EIA.

Later in the NA session and closing the calendar, Baker Hughes will publish its usual weekly report on US drilling activity.

What to look for around WTI

WTI has recorded fresh multi-month tops just below the $63.00 mark per barrel earlier in the week. The ongoing rally remains well supported by traders’ sentiment in line with an improved mood surrounding the risk-associated complex. In addition, the underlying bullish view in crude oil is expected to persist propped up by the so-called ‘Saudi put’, tight conditions in the US markets (amidst US net imports in historic low levels and the rising activity in refiners ahead of the summer session), the current OPEC+ agreement to cut oil output and ongoing US sanctions against Iranian and Venezuelan crude oil exports. In addition, speculators increased their long exposure in oil during the week ended on March 26, taking net longs to the highest level since late October 2018. Further out, the OPEC+ could announce an extension of the current agreement to curb oil production at the cartel’s meeting in June.

WTI significant levels

At the moment the barrel of WTI is up 0.56% at $62.35 and a breakout of $62.79 (2019 high Apr.3) would open the door for $63.74 (61.8% Fibo of the October-December drop) and finally $68.06 (low Oct.29 2018). On the other hand, the next support is located at $61.46 (200-day SMA) followed by $59.42 (21-day SMA) and then $57.91 (low Mar.25).