WTI Oil consolidates under new 2019 high
WTI oil hit new 2019 high at $58.65 on Thursday (the highest since 13 Nov 2018), in extension of strong bullish acceleration on Wednesday that resulted in eventual break and close above previous highs at $57.79/85.
Oil price was boosted by unexpected drop in US crude inventories which showed draw of 3.8 mln bls previous week against expected increase of 2.6 mln bls and previous week’s strong build of 7 mln bls.
Adding to positive sentiment was attempt of Saudi Arabia to further reduce oil production and reduced supply from Iran (due to US sanctions) and Venezuela (hit by sanctions and political turmoil.
Traders took some profits after three-day rally, sending the price lower, but bias remains bullish and sees current easing as positioning for fresh upside attempts towards targets at $59.62 (50% retracement of $76.88/$42.36) and $60.0 (psychological barrier).
Former highs mark initial supports ($7.85/79), with extended dips expected to find ground above converged 10/20SMA’s ($56.72) and keep bulls in play.
Res: 58.65; 59.62; 60.00; 61.27
Sup: 57.85; 57.24; 56.72; 55.94