Oil prices maintained the bullish trend but eased after touching new highs of $64.68. Price retreated after conflicting signals. Russia, the largest non-OPEC supplier said on Tuesday that it prefers to increase supply when the current production cuts end in June. This was in contrast to the production cuts currently underway alongside tensions in Libya which have caused oil prices to maintain a steady uptrend.
Is WTI Crude Oil Due for a Correction?
WTI Crude oil has been rallying for the past five consecutive weeks pushing oil prices to a five-month high. The uptrend is still intact, and we expect this current dip to be a mere correction to the uptrend. The main target for crude oil prices is near the $65.00 – $66.00 region. The current dip is likely to see price testing $62.80 where support could be formed.
