On a fundamental basis, which has driven the price of WTI higher, the US is considering letting Venezuelan waivers expire for Chevron and other US companies, which would significantly hasten the deterioration in Venezuelan crude production. There are also rising tensions with Iran as Rouhani considers ‘consequences’ for the UK’s decision to seize an Iranian oil tanker buoy prices.
This has opened the case for the upside, with WTI printing a strong bullish candle, exceeding the prior 60.12 level and breaking higher above the 20, 50 and 200 Experiential Moving Averages that will support on the downside on bearish corrections with the first of which comes in at 57.90 (the 200-day moving average). On the flipside, bears aim for a break to the weekly lows at 56.77. Below there, we have the 52 handle and then the 14th Jan 50.41 lows ahead of the 26th November lows at 49.44 are a target.