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  • Oil bulls in the diving seat above 4-hour support.
  • Bulls seeking a break of the daily highs for a bullish continuation.

West Texas Intermediate crude (WTI), is off its highest levels since March  and is trading back down to $68.00, albeit still higher on the day by 1.48% at the time of writing.

The black gold has travelled between a low of $66.91 to a high of $68.85 on the day so far.

The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+,  agreed to continue a slow easing of supply curbs in their meeting today.

Back in April, OPEC decided  to put back  2.1 million barrels per day (bpd) of supply to the market from May to July due to the prospects of increased global demand.

The  producers have now balanced an expected demand recovery against a possible increase in Iranian output.

Meanwhile, there are also expectations for growing fuel demand during the summer driving season in the United States and vacations across mainland Europe.  

Overnight, Chinese data showed that factory activity grew at its fastest pace this year in May which underscores the prospects of a faster worldwide economic recovery in post covid era.

Additionally, US  crude stockpiles were expected to fall by 2.1 million barrels last week, according to a preliminary Reuters poll.

WTI technical analysis

WTI is carving out a bullish extension above prior daily resistance in a fresh bullish impulse, supported by the 10-day EMA.

From a 4-hour perspective, the price action is somewhat consolidative now given the strong bearish impulse to test the bullish 4-hour 10 EMA and prior 4-hour hoghs of 67.49.  

However, a gradual bullish drift to the upside could be in order at this juncture leaving the bullish bias intact from a longer-term perspective.