US oil futures rise above $70 for the first time since November 2014
- WTI oil is trading at the highest level since November 2014.
- Iran tensions keep futures solidly bid.
The WTI oil futures rose to $70.22/barrel in Asia - the level was last seen in November 2014 on fears President Trump is set to walk away from the 2015 Iran deal (set to expire on May 12).
If the deal falls apart, then Iran's exports could fall sharply. Hence, it is not surprising to see oil scale multi-year highs.
The geopolitical uncertainty has also overshadowed the surging US output. The Energy Information Administration (EIA) monthly report showed US oil production jumped 260,000 barrels per day (bpd) to 10.26 million bpd in February, the highest on record. Further, Baker Hughes data released on Friday showed the US oil rig count increased to 834 - the highest levels since March 2015.
WTI Oil Technical Levels
As of writing, oil futures are trading at $70.20/barrel. A break above $70.76 (August 2010 low) would open the doors to $74.93 (Oct 2011 low). On the downside, support is seen at $69.51 (April 19 high) and $68.85 (10MA on 4hr chart).