Positive demand outlook lifts oil price to one-week high
WTI oil rose to one-week high on Wednesday, lifted by expectations of rising fuel demand that would offset fears about the impact of a surge in India’s coronavirus cases, while lower than expected build in US crude inventories (0.090 mln bls vs 0.659 mln bls forecast) contributed to positive tone.
Fresh advance extends into second straight day and probes again through pivotal Fibo barrier at $63.86 (61.8% of $67.95/$57.25 pullback).
Eventual close above this level after last week’s recovery stalled here, would generate bullish signal for extension of larger recovery rally from $57.25 (Mar 23 low), which paused after bulls got trapped above $63.86 Fibo level last week.
Rising positive momentum and daily moving averages in bullish setup support the action., which pressures last week’s spike high ($64.35), with break higher to expose $65.00 (round-figure) and $65.42 (Fibo 76.4% of $67.95/$57.25).
Res: 64.35; 64.85; 65.00; 65.42
Sup: 63.86; 63.27; 63.00; 62.60