WTI clocks fresh 2019 tops near $ 58.70 on tighter global supplies

• Upside opening up towards 60.00 mark amid tightening global supplies, increased demand for risk assets.
• Technical set up also points to further bullish momentum.

After a brief consolidative stint in the Asian trades, WTI (oil futures on NYMEX) gathered strength and refreshed four-month tops at 58.67 in the European session, as the European traders hit their desks and cheered the latest reports suggesting tightening global supplies.

Deepening OPEC output combined with the reduced supply amid the US sanctions on Iran and Venezuela  led to tightened global supplies. Further, the political and economic crisis in OPEC-member Venezuela also continues to pose supply disruption risks adding to the upbeat tone around the black gold.

Meanwhile, the bulls also cheered a bigger-than-expected drop in the US EIA weekly crude stockpiles combined with a decline in the US oil production. The US commercial crude oil inventories fell last week as refineries hiked output. The US crude oil production also dipped, falling by 100,000 barrels per day (bpd) to 12 million bpd, Reuters reported.

Additionally, the latest upbeat remarks from the Iraqi Oil Minister Al-Luaibi could also underpin the fresh leg higher in the barrel of WTI. Iraq’s OilMin Al-Luaibi: Iraq seeking a higher price for crude oil than current market prices

However, further upside remains at the mercy of the risk sentiment that now looks souring following fresh reports that the US and China are considering delaying the Trump-Xi meeting to at least April.

WTI Technical Levels