WTI remains stable near $ 69.50, the highest level since October 2018

• WTI drew some buying in the dips on Monday and turned positive for the sixth straight session.
• Expectations of rising demand for fuel continued to support the ongoing strong bull run.

Crude oil WTI It reversed an intraday decline to the $ 68.80-75 region and gradually retreated closer to the highest level since October 2018 during the early days of the American session. The commodity last traded around $ 69.00, up 0.40% on the day.

Data released Monday showed crude oil imports into China, the world’s largest importer, fell 14.6% year-on-year in May. This is due to last week’s agreement between OPEC and its allies to stick to supply restrictions until July. Aside from this, prospects for higher Iranian exports put some pressure on black gold during the first half of trading action on Monday.

A new set of talks between Iran and world powers on a nuclear deal is scheduled to begin Thursday in Vienna. A successful conclusion could include Washington lifting economic sanctions on Iranian oil exports. This could result in 500,000 to 1 million barrels per day of additional crude oil supply re-entering the world market.

Negative factors, to a greater extent, were offset by an optimistic outlook for the global economic recovery and the expectation of increasing fuel demand during the summer driving season in the US Added to this, some improvement in the pandemic situation in India it acted as a tailwind and helped the product attract some purchases in the dips to lower levels.

The fundamental backdrop supports the prospects for additional earnings. With technical indicators maintaining their bullish bias and still far from being in overbought territory, the setup appears to tilt firmly in favor of bullish traders. Therefore, a subsequent move to new multi-year highs, or levels beyond the key psychological level of $ 70.00, seems like a clear possibility.

Technical levels