WTI jumps over 1% to test $ 69.50 on US growth optimism

• Solid US Q2 GDP figures outweigh US-China trade tensions.
• Bulls yearn for the $ 70 level amid falling US crude stockpiles.

WTI (oil futures on NYMEX) is on a gradual retreat from the weekly tops reached near $ 70 level a day before, although remains on track to book first weekly gains in three weeks.

WTI: $ 70 mark back on sight?

The barrel of WTI reversed more-than-half the Friday’s decline and now looks to test the last week’s high of $ 69.92, as the bulls fight back control amid expectations of strengthening oil demand from the world’s top oil consumer, the US,  after the US economy grew at its fastest pace in nearly four years in the second quarter.

Moreover, the extension of the losses in the US dollar versus its main competitors also fresh lift to the USD-denominated oil. The USD index drops -0.15% to fresh two-day lows near 94.50, having faded the recovery attempt around 94.75.

Furthermore, last week’s drawdown in the US crude stockpiles also continues to offer support to the commodity. However, markets remain skeptical whether the black gold will sustain the upside, as escalating US-China trade tensions continue to dampen the risk-sentiment and eventually weigh down on the higher-yielding oil.

Looking ahead, markets await the weekly crude supplies report from the US for fresh trading impetus.

WTI Technical Levels

According to Mike Paulenoff, Author  at MPtrader, “From the perspective of an Inverted Cup & Handle pattern (Dome and Igloo),  Oil  should be on the verge of a significant breakdown, especially if it closes under 68.40… Last is 68.60/61.”