WTI is taking the rounds above the $63 level during today's early session, as the energy benchmark failed to stretch its latest recovery on soft China PMI data. Not only official purchasing manager index (PMI) but numbers from Caixin manufacturing PMI also lagged behind prior and consensus, which in-turn disappointed energy traders as China is one of the largest users of commodities. Soft prints of the US Dollar on the back of not so welcome data joined hands with the threat from Iran that the US might have to bear the burden of latest efforts to cut their oil exports to zero. Though, the gains were not much to counter Friday's drop on news that President Trump pushed OPEC members towards supply increase. Energy traders may now turn towards the weekly release of the American Petroleum Institute crude oil stock data which grew significantly last week.
Crude oil prices regained traction after finding a strong support at the $62.5 level to climbing back well above the $63 level. The price is currently on the rise as it is taking bids above the $63.6 per barrel with a strong momentum after retreating from the oversold zone. We will keep focusing on the upside and the next level to watch is the $64.48 resistance level.
Support: 63.43/ 62.75
Resistance: 64.07/ 64.48