Crude oil continuing upwards, WTI at 61.60, Brent 66.60
- Crude still climbing on deflating Greenback.
- US-fed oversupply still providing bearish risk to prices.
Crude oil continues to drift upwards on thin markets, with WTI pushing above 61.60/barrel and Brent holding above 64.60/barrel as of writing.
Crude prices received a boost following the US CPI data on Wednesday which saw US inflation outpacing expectations which puts the Federal Reserve on track to begin raising interest rates and begin reeling in their easy monetary policies. Growth is putting pressure on the US Dollar and giving a lift to commodities, with WTI and Brent halting their recent slides on oversupply.
The US oil industry is pumping record amounts of crude oil into global markets, and oil traders have been balking at the glut in inventories, sending WTI and Brent tumbling in recent weeks. Though the renewed collapse in Dollar confidence is providing a much-needed lifeline to crude, the lift can only be expected to last so long with American oil production at all-time highs, with the US supplanting oil-laden Saudi Arabia as one of the largest oil producers in the world. The continued oversupply will continue to weigh down oil prices going forward unless production hits some kind of barrier.
Crude Technicals
Oil is at an inflection point, balanced between bullish forces from a weakening US Dollar and bearish pressure from burgeoning supply; WTI has support priced in from 58.20 and 60.20, while resistance for a continuation of the current bullish swing can be found at 64.15 and 66.20. Brent has a temporary floor from 62.00, while buyers will have to overcome the possible reversal zone forming just above price at 65.10.