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  • WTI bulls taking charge through daily resistance.
  • Bears on the lookout for a test of support.

]West Texas Intermediate (WTI) is currently trading at $67.23 and higher by over 0.5% in Asia as the price extends the overnight bullish trend.

Oil prices rose 1% on Thursday as investors cheered positive outlooks for world growth bolstered by strong US economic data.

Brent rose 59 cents, 0.9%, to settle at $69.46 a barrel. West Texas Intermediate (WTI) crude rose 64 cents, or 1%, to settle at $66.85 a barrel.

WTI spot prices ended the day 1.07% higher at $66.85 after travelling from a low of $65.49 and reaching as high as $66.89.

The potential gradual increase of Iranian supply is being offset by prospects of faster global economic growth.

For instance, yesterday’s reduction in US jobless claims helped to raise hopes of stronger demand as applications fell for the fourth consecutive week to a fresh pandemic low as businesses reopened.

”This comes as American drivers hit the road in increasing numbers. In fact, they are now travelling as many miles on interstates highways as they did in 2019,” analysts at ANZ Bank noted.

Traders will now look ahead to the June 1 meeting of the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+ who are expected to continue to gradually ease oil supply curbs.

”At this stage we expect them to ratify the 840kb/d increase in output for July; however, progress in the nuclear deal could throw a spanner in the works. ,” the analysts at ANZ bank said.

There are also some lingering worries about demand in India, the world’s third-largest oil consumer, which is having to contend with a massive wave of the coronavirus. Only about 3% of its population has been fully vaccinated, according to the Reuters vaccine tracker.

WTI technical analysis

Bulls are moving up through daily resistance to clear the prior daily highs of 66.99.

A continuation could be on the cards now, but a correction in the near term will be watched for to ensure that the support is firm.