- Prices of the WTI extend the up move above $64.00.
- USD weakness sustains the rally in prices.
- API report on crude oil stockpiles next on tap.
Prices of the barrel of the American benchmark for the sweet light crude are pushing higher during the first half of the week, reclaiming the $64.00 mark and above on the back of rising downside pressure in the greenback.
WTI looks to API, Venezuela
After bottoming out in the vicinity of the $62.00 mark per barrel on Friday, WTI prices managed to regain buying interest on the back of a moderate sell off in the greenback and supportive geopolitical drivers.
Also sustaining the rally in prices, Saudi officials hinted earlier in the day at the likeliness that the ongoing OPEC+ agreement to curb oil production could be extended to end of 2019.
On another front, rising turbulence in Venezuela is adding extra concerns to the supply side. In this regard it is worth noting that a return to a democratic government in the Caribbean oil producer should, among other things, help to rebuild the beleaguered oil industry, and therefore re-establish the production of crude oil. This scenario, however, appears as quite a long shot for the time being.
In the calendar, the usual weekly report on US crude oil inventories by the API is due later ahead of the official report by the DoE due tomorrow.
What to look for around WTI
WTI climbed to fresh 6-month highs beyond the $66.00 mark per barrel last week, although the up move apparently lacked of sustainability. In the meantime, US sanctions against Iranian crude oil exports and the response from OPEC members to the probable supply disruptions are posed to drive the sentiment in the near term along with rising geopolitical effervescence in Libya and developments from the US-China trade talks in Beijing later this week. Looking at the broader scenario, the so-called ‘Saudi put’, tighter conditions in the US oil market, the current OPEC+ deal to curb oil output, favourable speculative positioning and increasing turmoil in Venezuela keep propping up the underlying bullish view on crude oil.
WTI significant levels
At the moment the barrel of WTI is gaining 0.63% at $63.91 and a surpass of $66.46 (2019 high Apr.23) would expose $68.06 (low Oct.29 2018) and finally $69.60 (78.6% Fibo of the October-December drop). On the downside, the next support is located at $62.16 (low Apr.26) seconded by $61.64 (low Apr.5) and then $60.85 (200-day SMA).
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