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  • Crude oil higher after OPEC meeting and also amid a weaker US dollar.  
  • WTI up more than 2%, on its way to the highest close in two months.  

WTI (oil futures on NYMEX) opened the week posting gains and rose further during the European session. Price peaked at $72.50 a barrel, the highest level since July 11 and then pulled back modestly to $71.80. It climbed back above $72.00 and as of writing was hovering slightly below daily highs, with the positive tone intact.  

US sanctions on Iran, latest EIA inventory data and the OPEC meeting boosted crude oil. Also technical factors contribute to today’s rally after making a solid break of the $71.70 area. Price is headed toward the highest close in two months, signaling a potential test of $73.00.  

WTI Technical outlook  

“Monday’s rally made eventual break above cracked Fibo barrier at $71.17 (61.8% of $75.34/$64.43 descend) and also completed inverse H&S pattern on daily chart, generating strong bullish signal.
Daily techs are in full bullish setup and support further advance, but bulls may take a breather before resuming towards target at $72.77 (Fibo 76.4%), as slow stochastic turned sideways at the border of overbought territory”, said Slobodan Drvenica, from Windsor Brokers.  

If WTI losses momentum,  the immediate support now is seen at $71.70/80 (previous resistance) followed by $71.15 and $70.88