WTI firm, targets 2019 highs near $63.00/bbl

• Prices of WTI recover ground above the $62.00 mark today.
• US crude oil supplies rose on Wednesday, according to EIA.
• OPEC+ deal, sanctions keep bolstering the rally in prices.

The upbeat sentiment around crude oil prices remains everything but abated so far today, with the barrel of American benchmark WTI trading at shouting distance from 2019 highs just below the $63.00 mark.

WTI sustained by OPEC, leaves behind EIA build

Prices of the West Texas Intermediate are reversing yesterday’s small pullback and have returned to the area above the key $62.00 mark per barrel, navigating in levels last seen in early November 2018.

Crude oil prices interrupted their rally on Wednesday in response to an unexpected 7.2M barrel build in US crude oil supplies, as reported by the EIA. Yesterday’s increase in crude supplies adds to last week’s build of 2.8M barrels.

However, the buying pressure in crude oil stays intact, with prices advancing in 11 out of the last 15 weeks, or gaining around 48% since late December lows in the $42.20 area.

What to look for around WTI

WTI has recorded fresh multi-month tops just below the $63.00 mark per barrel earlier in the week. The ongoing rally remains well supported by traders’ sentiment in line with an improved mood surrounding the risk-associated complex. In addition, the underlying bullish view in crude oil is expected to persist propped up by the so-called ‘Saudi put’, tight conditions in the US markets (amidst US net imports in historic low levels and the rising activity in refiners ahead of the summer session), the current OPEC+ agreement to cut oil output and ongoing US sanctions against Iranian and Venezuelan crude oil exports. In addition, speculators increased their long exposure in oil during the week ended on March 26, taking net longs to the highest level since late October 2018. Further out, the OPEC+ could announce an extension of the current agreement to curb oil production at the cartel’s meeting in June.

WTI significant levels

At the moment the barrel of WTI is gaining 0.27% at $62.47 and a breakout of $62.79 (2019 high Apr.3) would open the door for $63.74 (61.8% Fibo of the October-December drop) and finally $68.06 (low Oct.29 2018). On the other hand, immediate contention emerges at $61.52 (200-day SMA) followed by $59.15 (21-day SMA) and then $57.91 (low Mar.25).