WTI oil price advanced around 1.3% in holiday-thinned trading on Monday, underpinned by increased fuel demand on holiday season that was reflected on stronger than expected drop in crude inventories.
Near-term picture is turning positive on improving daily technical studies (positive momentum / daily Tenkan/Kijun-sen in bullish setup) and signals attack at key barriers at $71.39/48 (peaks of recent range) after bulls broke above 100DMA ($70.84) and $71.09 (Fibo 38.2% of $78.45 / $66.54).
Sustained break of $71.39/48 to generate fresh bullish signal and open way for further gains, with targets at $72.50 and $72.85 (50% retracement / Nov 7 high) to come in focus.
However, larger picture is still negative, as oil price was down around 0.8% in 2024, with minimum impact from key factors – supply / demand and geopolitics.
Markets await releases of economic data from China (Tuesday) and the US (Friday) for fresh signals from two largest economies and oil consumers.
Focus will be also on anticipated action from new US administration after Donald Trump returns to the White House on Jan 20.
Res: 71.48; 72.00; 72.50; 72.85
Sup: 71.09; 70.84; 70.00; 69.64
