WTI rises for the third straight session, $ 58 closer

Fundamentals lend support.
Re-takes $ 58 mark.
The US weekly crude supplies report on tap.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) extends its rebound from five-day lows into a third day today, as the sentiment remains lifted amid upbeat fundamentals and a broadly weaker US dollar.

WTI rejected just shy of the $ 57 mark

The barrel of WTI trades with moderate gains so far this Monday, as the bulls find support from the supply disruption concerns, emerging from the ongoing North Sea pipeline outage while a strike by Nigerian oil workers threatened its crude exports, further accentuates the bullish tone seen around the commodity.

Moreover, a drop in the US rigs count for the first time in six weeks to 747 last week, also collaborated to the upside in the prices. Also, the bulls benefit from the broad-based USD weakness and bullish US CFTC crude oil positioning data.

WTI net longs at record highs - CFTC

However, the black gold could face some struggle to extend the upside, in the wake of rising US oil production levels and expectations of ample supplies to prevail in 2018. At the time of writing, WTI trades +0.70% higher at session tops of $ 57.77 while Brent rises +0.77% to $ 63.85.

WTI Technical Levels

The resistances are aligned at $58.50 (psychological levels) ahead of $59 (Nov 24 high) and $59.85 (April 2015 tops). On the downside, supports are located at $57.20 (5 & 10-DMA), $56.29 (50-DMA) and $55.82 (Dec 7 low).”

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.

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