Oil price regained traction and hit new marginally higher two-week high at $65.89 on Wednesday, after brief pullback found footstep at $65.14.
Oil price surged on Monday and Tuesday, gaining nearly 6%, on rally from $61.80 through which threatens to fully retrace $66.53/$61.80 pullback.
WTI rose on weaker dollar and geopolitical tensions in the Middle East, as well as concerns about trade war between US and China.
Much stronger than expected build of crude stocks (API report showed build of 1.75 million barrels vs 0.100 million barrels forecast and 3.2 million barrels draw of last week) did not show stronger impact on oil bulls.
Daily techs in bullish setup continue to underpin, however, weaker momentum and overbought slow stochastic warn of hesitation on approach to key barrier at $66.53 (26 Mar peak).
Oil price remains supported by geopolitical tensions over Syria and signals that the US could renew sanctions against Iran, which could further complicate the situation and boost oil price.
EIA weekly crude stocks report and US CPI data are in focus today. Crude inventories are forecasted for a minor draw of 0.18 million barrels, compared to last week’s strong 4.61 million barrels draw.
indicate oil’s near-term direction.
Psychological $65 level marks initial support, followed by more significant $64.29 support (top of 4-hr cloud) which should contain stronger dips and keep bulls intact.
Res: 66.00, 66.28, 66.53, 66.64
Sup: 65.14, 65.00, 64.72, 64.29
