Oil prices surged on Tuesday, inflated by expectations for growing fuel demand during the summer driving season in the US, continuation of slow increase in supply by OPEC+ group and strong Chinese factory data that support hopes for further rise in global oil demand.
WTI contract was up 2.5% since opening in Asia and rose to the highest since Oct 2018 at $68.84.
Fresh bulls came ticks ahead of $69 round figure barrier and turned focus towards psychological $70 level, with firmly bullish studies on all larger timeframes being supportive, however overbought conditions may produce headwinds and pause bulls for price adjustment.
Close above former2021 high at $67.95 would generate a bullish signal, but attack at $70 target could be delayed.
Shallow correction is expected due to improved sentiment, with dips to be ideally contained at $67.00/$66.50 zone and provide better levels to re-enter bullish market.
Only dip through $66 handle would put bulls on hold for deeper correction.
Res: 68.84; 69.00; 70.00; 70.36.
Sup: 67.95; 67.10; 66.50; 66.05.
