WTI suffers an early fade within daily consolidation

WTI is trading a touch lower in Asia, down some 0.1% following slip from the 68.94 highs to a low of $68.80.

Oil prices were fairly tight on Thursday s the price travelled between $68.21 and a high of $69.37, up some 0.23% by the end of the North American day.

June, so far, has been a solid one for the prior of oil following two straight days of gains in the week.

Oil futures have rallied this week to highs not seen in a year after weekly US crude stocks fell sharply while fuel inventories rose more than expected.

''Optimism for a strong summer period for demand remains,'' analysts at ANZ Bank said.

''Data suggest it’s off to a good start, with the four week rolling average of gasoline supplied (a proxy for demand) gaining for the third straight week to 9.16mb/d. The same gauge for jet fuel has also recorded strong gains over the past few weeks.''

Brent futures settled at $71.31 a barrel, down 4 cents after touching its highest since May 2019 earlier in the session. US WTI crude settled at $68.81 a barrel, losing 2 cents.

WTI prices rose as high as $69.40, the strongest since October 2018, after gaining 1.5% in the previous session. US crude inventories fell by 5.1 million barrels last week.

This was by comparison to the expectations for a decrease of 2.4 million barrels. Gasoline stocks grew by 1.5 million barrels and distillate stockpiles jumped by 3.7 million barrels. 

Meanwhile, the greenback is making a comeback.

Stronger-than-expected US jobs data that suggested an improving labour market has reinforced signs that the world's largest economy is on the mend and will force the hand of the Fed. Thismakes today's Nonfarm Payroll a kye event for the day ahead. 

WTI technical analysis

Technically, the price of oil is moving higher but old daily resistance would now be expected to act as support where there is a confluence with the 10-day EMA.

At this juncture, and according to the monthly chart, a correction might be on the cards before long.

The prior highs have a confluence with the 38.2% Fibonacci retracement level at 66.38 at this point.