- Energy buyers cheer Reuters report of additional Iran sanctions from the US and Venezuelan export disturbance.
- Optimism surrounding global economic growth and supply reduction at OPEC earlier pleased WTI bulls.
- API inventory data in focus now.
WTI is on the bids around a fresh five-month high of $62.00 during early Tuesday. The energy benchmark recently crossed the 200-day simple moving average (SMA) for the first time since October 2018 as Reuters reported that the US is considering additional sanction on Iran while also mentioning of an export halt at Venezuela’s key terminal. Weekly crude oil stocks from the API will bear immediate attention of the WTI traders.
Early Tuesday, Reuters reported that the US official said Washington is considering more sanctions on Iran targeting areas of its economy that have not been hit before together with a news report concerning an operation halt due to the power outage at Venezuela’s Jose crude export terminal.
While upbeat developments surrounding the US-China trade talks have triggered the recovery in oil prices during late last-week, welcome prints of manufacturing data from the US and China further favored energy optimists on Monday.
Adding to the upbeat sentiment was a Reuters survey report that signaled oil supplies by the Organization of the Petroleum Exporting Countries (OPEC) dropped to a four-year low during March.
Traders may now focus on the industry data conveying crude oil stocks for the week ended on March 25 for fresh clues on supply data. The American Petroleum Institute (API) previously registered an increase of 1.0927 million barrels.
WTI Technical Analysis
WTI needs to register successful trading beyond $62.00 in order to aim for $62.50 and $63.40 resistances while $65.30/40 could please bulls afterward.
Should the energy benchmark slip under 200-day SMA level of $61.90, it can revisit $60.50 and $60.00.
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