- WTI made a solid recovery from month-long lows and broke a three-day losing streak.
- Progress in restoring the Iran nuclear deal, the nervousness of COVID-19 could keep any major gains at bay.
Crude oil WTI updated daily lows ahead of the American session, and the bulls are now looking to take advantage of the momentum above $ 63.00 / barrel.
Crude oil halted this week’s sharp retracement from near $ 67.00 (two-month highs), and posted a solid intraday rebound from one-month lows around $ 61.50. The momentum allowed black gold to break three consecutive days of the losing streak and recover a significant part of the previous day’s losses.
Investors remain optimistic about the recovery in fuel demand amid the impressive rate of vaccination in Western countries and the gradual reopening of economies. That said, investors remain concerned that the continued rise in COVID-19 cases in Asia and the imposition of new restrictive measures could hamper the fragile recovery in fuel demand.
This comes amid expectations about the return of Iranian crude supplies amid progress in restoring the Iran nuclear deal. In fact, Iran’s president said the United States was ready to lift sanctions on the country’s oil, banking and maritime sectors. The development should prevent the bulls from making aggressive bets and control strong gains.
Even from a technical perspective, the recent break through a two-week trading range support, around the $ 63.00 level, favors bearish traders and supports the prospects for further losses. Therefore, any further move to the upside could still be seen as an opportunity for bearish traders and risks fading away fairly quickly.
Technical levels
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