WTI up for a double top around $51.50?

WTI has continued with the recovery on the $51 handle, making fresh highs of 5154 for the US session. Commodities are generally higher across the board on a combination of a weaker USD and optimism about Chinese growth.

Yesterday's sell-off post the news that US stockpiles of crude oil rose by 1.56 million barrels to 535.5 million barrels has reversed. The strong refinery runs negated some of that weakness. Refineries operated at 90.8% last week, up 1.5% from the week prior and the highest since January. Data showed that US production of crude oil rose 52kb/d to 9.2mb/d.

WTI was trading as low as $46.63 back on the 27th March, however, the market's concerns about Trump's ability to implement all of what has been priced into the US dollar in respect to his planned policies for, say, sweeping tax cuts, for instance, is weighing on the dollar. 

At the same time, the Fed was unable to offer a convincing communication to the markets yesterday with the FOMC minutes failing to alone a precise plan in respect to reducing its balance sheet. Nevertheless, tapering was regarded as a near term reality and that has been priced in as negative for sentiment, also weighing on the US dollar. 

WTI levels

WTI is now above the 50-d sma at 51.00 and up to mark either a double-top or keeping going through yesterday's highs 51.55. The next level on the upside is 5265 on the wide on a penetration and daily close of the %2 handle. To the downside, 49.81 ahead of 48.11.