- Bulls consolidate the renewed upside amid risk-on and weaker US dollar.
- Global supply concerns outweigh economic slowdown woes.
- Focus on weekly US crude supplies report and US-China trade talks.
WTI (oil futures on NYMEX) kicked-off the second quarter of 2019 on a bullish note, extending its first-quarter gains and reached the highest levels in more than four months at 60.88 levels before retreating to the 60.50 level, where it now wavers.
The steady rise in the black gold can be mainly attributed to the renewed risk-on wave that gripped the global stocks amid improved Chinese factory data and US-China trade progress. More so, mounting global supplies concerns also underpinned the sentiment around oil, as markets remained little concerned about the slowdown in the global economy.
Ongoing OPEC output cuts and the US sanctions on Venezuela and Iran continue to flag a potential supply deficit in the first quarter. Reuters quoted three sources familiar with the matter, as saying that the US has also instructed oil trading houses and refiners to further cut dealings with Venezuela or face sanctions themselves, even if the trades are not prohibited by published US sanctions.
In further evidence of increased investor confidence in the US oil, the latest US Commodity Futures Trading Commission (CFTC) report showed that the hedge funds and other money managers raised their net long US crude futures and options positions to 243,209 in the week to March 26th.
Looking ahead, the risk-on market environment and the USD dynamics will continue to remain oil-supportive heading into the US retail sales and ISM manufacturing PMI data due later in the NA session.
WTI Technical Levels
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