Oil prices dip mildly in Asian session as Kazakhstan’s largest oil venture Tengizchevroil is gradually normalizing production. Some contractors had disrupted train lines in support of protests in the country last week.
WTI crude oil hit as high as 80.63 last week but fails to sustain above 80 handle so far. Some consolidations could be seen first, but further rally is expected as long as 74.48 support holds. Rally from 62.90 should target 161.8% projection of 62.90 to 73.66 from 66.46 at 83.86, which is close to 85.92 high.
For now, we’re not expecting a break of 85.92 yet. We’d expect at least one more down leg before the corrective pattern from there completes. Hence, we’d look for topping between 83.86/85.92.
