WTI resumes the upside and now targets $60.00

The barrel of WTI regains some shine after recent sell-off.
The $60.00 mark caps the upside so far today.
API weekly report on inventories next of note later today.

Prices of the American benchmark for the sweet light crude oil are edging higher on Tuesday, managing to regain some ground lost albeit still trading in sub-$60.00 levels.

WTI now looks to API

The barrel of the West Texas Intermediate appears to have recovered the smile on Tuesday following the sharp sell off at the beginning of the week. In fact, prices of WTI dropped markedly on Monday after production in the Gulf of Mexico has started to slowly return to normalcy following the recent storm, alleviating supply concerns.

In the meantime, the US-China trade dispute remains in limbo although the threat over the global demand for oil remains intact and is preventing a serious bull run in crude oil prices.

Later in the day, the American Petroleum Institute (API) will publish its weekly report on US crude oil inventories ahead of tomorrow’s official report by the DoE.

What to look for around WTI

Recent price action around WTI showed decent contention emerged around the $59.00 mark, which is at the same time reinforced by the 100-day SMA. However, traders failed to push the barrel of WTI further north of the key $61.00 mark during the end of last week and yesterday, as supply concerns have subsided somewhat.. Supporting prices, however, emerges the geopolitical factor, with Iran and the US in centre stage, the recent extension of the OPEC+ deal to curb output until the end of Q1 2020, tight US oil markets and the so-called ‘Saudi put’.

WTI significant levels

At the moment the barrel of WTI is gaining 1.04% at $59.90 and a surpass of $60.86 (monthly high Jul.15) would expose $62.44 (monthly high May 20) and then $66.46 (2019 high Apr.23). On the downside, immediate contention emerges at $57.64 (200-day SMA) seconded by $55.91 (low Jul.3) and finally $50.54 (monthly low Jun.5).

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