The barrel of WTI clings to moderate gains above the key $60 threshold. But the question is why did WTI prices surge above $60? Let’s discuss this.
29 December, GKFX– Having reached the highest levels since June 2015 at $ 60.32 in the Asian trades, WTI (oil futures on NYMEX) consolidated briefly near the last, before easing slightly to test the $ 60 mark in the European session.
- Sits at mid-2015 highs.
- Bullish EIA report & weaker DXY.
- Eyes on US rigs count data
Why did WTI prices surge above $60?
The barrel of WTI clings to moderate gains above the key $ 60 threshold, although fails to extend the upside, as the bulls take a breather ahead of the US rigs count data due to be reported later in the NA session.
The ongoing rally in the black gold is mainly fuelled by strengthening Chinese crude oil demand and supply disruption threats, in response to the Libyan and North Sea pipeline outage reports.
Moreover, an unexpected drop in the US output levels combined with a drawdown seen in the US crude stockpiles, as reflected by the weekly EIA data, further added to the bullish momentum seen around the commodity. The EIA report showed that the US crude inventories dropped by 4.6 million barrels in the week to Dec. 22 to 431.9 million barrels. The US oil output dipped to 9.754million bpd versus 9.789million bpd previous.
Oil prices also continue to find support from persistent broad-based US dollar weakness, which remains the main driver for the markets in subdued pre-New Year trading activity. At the time of writing, WTI rises +0.47% to $ 60.10 while Brent gains +0.39% to $ 66.42.
29 December WTI Price Technical Analysis
The resistances are aligned at $60.31 (2-1/2 year tops) ahead of $60.50 (psychological levels) and $61.82 (June 2015 tops). On the downside, supports are located at $59.64 (5-DMA), $58.77 (10-DMA) and $57.88 (Dec 22 low).”
This article “Why did WTI prices surge above $60? ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.