WTI oil holds in tight consolidation under new high at $72.76 (the highest since late Nov 2014) on Tuesday, following previous day’s strong bullish acceleration which resulted in eventual break above seven-day congestion.
Bullish sentiment is maintained by strong global demand, new US sanctions on Venezuela and concerns about US sanctions on Iran which could significantly reduce Iranian oil export.
In addition, ongoing deal between OPEC and Russia on cutting oil production in order to further tighten global oil markets, also gives results and keeps oil prices supported.
Fresh bullish extension came ticks ahead of target at $72.85 (Fibo 161.8% projection) and could extend towards strong barriers $76.35 (Fibo 61.8% of 107.45/$26.04) in coming sessions, as daily techs are in firm bullish setup.
Near-term focus turns towards release of US weekly crude stocks reports which are expected to provide fresh signals.
API report will be released late Tuesday, with hopes for draw in crude inventories which unexpectedly rose last week (4.85 million barrels) and EIA report on Wednesday which is forecasted for 1 million barrels draw, compared to minimal drop of 0.09 million barrels last week.
Further drops in oil inventories would offer fresh support for rising oil prices.
Res: 72.85; 73.47; 74.00; 74.60
Sup: 72.38; 71.86; 71.47; 70.98
