WTI clocks fresh 3.5 year highs at $ 69.25
- Bulls relentless amid falling stockpiles and Saudi headlines.
- Technicals indicate a test of $ 70 mark is likely, but when?
WTI (oil futures on NYMEX) built on Wednesday’s rally and hit the highest levels since December 2014 at $ 69.25, as fundamental drivers continue to remain supportive, as bulls gear up for a test of $ 70.
The black gold continued its ride higher on bullish US Energy Information Administration (EIA) crude stockpiles report, which showed that the US crude inventories fell by 1.1 million barrels in the week to April 13, to 427.57 million barrels.
Further, the comments by Saudi Arabia’s top oil exporter, backing the case for oil prices at $ 80 or even $ 100/ barrel, also kept the buoyant tone intact around the prices amid better risk sentiment.
Meanwhile, the barrel in WTI may also find some impetus from the latest remarks by Total CEO Pouyanne, as he said that the OPEC, Non-OPEC discipline on cuts is necessary even with the oil price at $70-$75.
The oil markets now look forward to Friday’s US drilling sector activity report for near-term trading opportunities. In the meantime, the risk trends and upbeat fundamentals will continue to keep the bulls in action.
WTI Technicals
At $ 69.08, the next resistances are aligned at $ 69.52/58 (Fib R2/ classic R1), $ 70 (key psychological levels) and $ 70.42 (classic R2). To the downside, supports are located at $ 68.63 (daily low), $ 68.07 (daily pivot) and $ 67.54 (5-DMA).