Oil Climbs to Fresh 2016 Highs, Eyeing Levels Beyond $47.00 Mark
WTI crude oil futures maintained its strong bid tone since yesterday, lifting the commodity to a fresh 2016 high level of $46.90.
On Wednesday oil prices got a boost from EIA's weekly report that showed inventories unexpectedly fell by 3.4 million barrels. Adding to it, the EIA, in its monthly Oil Market Report on Thursday, said that unplanned disruption to oil production in the likes of Canada, Nigeria or Libya could help erode surplus, while demand might surprise on the upside.
Moreover, oil is also a beneficiary of the risk-on sentiment spread across global financial markets. The overall positive sentiment surrounding the black gold assisted it to surpass it recent highs and climb to its highest level since early Nov. 2015.
Technical levels to watch
The commodity might now be aiming to surpass $47.00 round figure mark and aim towards Nov. 2015 daily closing highs resistance near $47.60-65 area. The momentum could further get extended beyond $48.00 handle towards Nov. 2011 intraday highs resistance near $48.30-35 zone.
Meanwhile on the downside, day’s through near $46.00 handle now seems to act as immediate support. Any subsequent weakness below $46.00 level now seems to be restricted at a strong support near $44.60-50 area.