Oil Rises above $47.00 Mark to a Fresh 6-Month High
WTI crude oil
futures kicked-off the fresh trading week on a strong footing, moving
back above $47.00/barrel mark for the first time since early November
2015 on bullish comments from a leading investment banker.
Last week's recovery in oil prices from $43.00 mark was led by
unexpected fall in US crude oil inventories and by EIA's monthly Oil
Market Report that expected a fall in output from non-OPEC producers
while expecting the demand surprise on the upside on the back of growing
gasoline consumption. Moreover, recent supply disruption from the likes
of Canada, Libya and Nigeria suppressed worries over global supply
glut.
The black gold also seems to benefit from mild USD weakness on Monday.
Investors now turn their focus to the weekly inventories data to get
some fresh insights on supply-demand dynamics.
Technical levels to watch
From technical perspective, the ongoing momentum seems strong enough to
lift the commodity further towards Nov. 2015 daily closing highs
resistance near $47.60 ahead of intraday highs resistance beyond $48.00
handle, near $48.25-35 region.
On the downside, upward trending 50-hourly SMA near $46.35, which is
closely followed by $46.00 round figure mark seems to protect immediate
downside. Any further weakness below $46.00 might be limited and is
likely get bought into near $45.80 strong support.