- WTI reverses recent weakness and recovers $ 60.00.
- Immediate support emerged around Friday’s low of $ 58.60.
- The API and EIA reports will arrive later in the week.
Crude oil prices regain their smile at the beginning of the week and push the barrel of West Texas Intermediate again above the key barrier at $ 60.00.
WTI attentive to Texas, data, risk
WTI prices are navigating the 2-day highs area above $ 60.00 and resumed higher after two consecutive daily pullbacks.
The rebound in crude prices comes amid persistent weakness hitting the dollar, while activity in Texas is expected to gradually return to normal following recent extreme freezing weather conditions.
On another front, traders are expected to turn their attention to the next OPEC + meeting on March 4. The consensus remains tilted towards the cautious side, as the cartel may decide to start pumping additional oil into the markets in light of the strong price recovery seen lately.
Later in the week, regular reports on US crude oil reserves produced by the API and the EIA are due on Tuesday and Wednesday, respectively.
What to look for around WTI
West Texas Intermediate prices found decent support in the region of $ 58.60 following fresh 13-month highs above $ 62.00 on February 18. Rising inflows into commodity-based ETFs have been supporting the rally in crude oil coupled with the persistent decline in U.S. crude oil supplies and icy weather conditions in Texas, all in a favorable environment for investors. riskier assets coupled with a weak dollar. In addition, strong growth prospects in China add to the acceleration of the launch of the vaccine in Europe / Rest of Asia and translate into growing expectations of a strong rebound in the post-coronavirus pandemic.
Technical levels
Right now, a barrel of WTI is up 3.05% to $ 60.71 and faces the next hurdle at $ 62.25 (February 18, 2021 high) seconded by $ 65.62 (January 8, 2020 high) and finally $ 66.58 (April 23, 2019 maximum). On the other hand, a breakout of $ 58.60 (Feb 19 low) would expose $ 57.43 (Feb 12 low) and then $ 52.22 (55-day SMA).
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