WTI recedes from 2019 highs beyond $60.00 ahead of API

• Crude oil prices add to Monday’s gains above the $60.00 mark.
• Tight supply conditions continue to prop up the up move in oil.
• API crude oil report coming up next.

Prices of the barrel of the West Texas Intermediate are prolonging the upside on Tuesday albeit now a tad lower from earlier YTD peaks in the $60.10 area.

WTI bid ahead of API report

The upbeat momentum in crude oil stays well and sound so far this week, always bolstered by tight conditions on the supply side, mainly as a consequence of the ongoing OPEC+ agreement to curb oil production.

However, the escalation of fresh geopolitical concerns in the Middle East around the Gaza Strip plus concerns over a slowdown in the main economies pose immediate threat to the ongoing rally in prices.

Moving forward, the API report on US supplies is due later today ahead of the DoE’s official report expected tomorrow and the weekly oil rig count by Baker Hughes on Friday.

What to look for around WTI

Crude oil has managed to advance further north of the critical $60.00 mark per barrel earlier today, clinching at the same time fresh yearly highs in levels last seen in November 2018. Following the up move, the underlying bullish view in crude oil remains well in place on the back of the so-called ‘Saudi put’, tight conditions in the US markets (amidst US net imports in historic low levels and the rising activity in refiners ahead of the summer session), the current OPEC+ agreement to cut oil output and ongoing US sanctions against Iranian and Venezuelan crude oil exports. Furthermore, the OPEC+ could announce an extension of the current agreement to curb oil production at the cartel’s meeting in June.

WTI significant levels

At the moment the barrel of WTI is up 1.59% at $59.75 and a breakout of $60.11 (2019 high Mar.26) would open the door for $61.74 (200-day SMA) and then $63.74 (61.8% Fibo of the October-December drop). On the other hand, the next down barrier aligns at $57.91 (low Mar.25) seconded by $57.54 (21-day SMA) and finally $54.37 (low Mar.8).