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  • Bulls continue to derive support from falling Venezuela output and Iran concerns.
  • WTI looks to regain $ 73 while Brent tests the 80 psychological barrier.

The bulls remain unstoppable, now pushing WTI (oil futures on NYMEX) closer towards the $ 73 mark, having refreshed the highest levels since November 2014.

The barrel of WTI resumes its march higher, having consolidated briefly around the $ 72.50 level earlier today. Oil continues to find support from the looming concerns over supply disruption that could arise amid falling Venezuela’s crude output following a disputed presidential election while potential US sanctions on Iran also adds to the bullish tone seen around the black gold. The US Secretary of State Pompeo toughened the US’ stance on Iran and made a list of sweeping demands on the OPEC’s third-largest oil producer.

Markets now await the US weekly crude stockpiles report due to be released by the American Petroleum Institute (API) later on Tuesday for fresh trading opportunities.

WTI Technical Levels

According to Peter Rosenstreich, Swissquote Bank’s Head of Market Strategy, “Crude oil is increasing further, breaking 72 psychological level. The road is wide opened for further rise. The bullish pattern started in mid- February 2018 is strengthening. Hourly support and resistance are given at 65.56 (17/04/2018 low) and 73.56 (28/11/2014 high). The technical structure suggests further short-term upward moves. In the long-term, crude oil has recovered after its sharp decline last year. However, we consider that further weakness is very likely.”