Despite having fewer fresh catalysts to follow, WTI remains on the bids near 7-week tops as it trades around the 60.5 level during today’s early session. Overall commodity basket run-up on the back of the US Dollar weakness can be spotted as a reason for the energy benchmark’s latest strength. Adding to the momentum could be the likely UK-Iran tension after the British oil tanker was stopped by Iranian guards in the Persian Gulf. On the background, supply cut extension by the Organization of the Petroleum Exporting Countries, Russia and some non-OPEC countries continue to flash output crunch worries. Moving on, monthly trade balance data from China and weekly release of the Baker Hughes US Oil Rig Counts will be on the black gold’s traders’ radar.
Crude prices maintained Wednesday’s traction during yesterday’s session as expected as it clings a fresh 7-week high at $60.91 per barrel after bull traders continue to maintain control on the commodity. The price is currently holding near the top just above the $60.55 support level despite in the deep overbought zone. We expect the continuation of the upsurge after a little breather and the next level we will be watching is the $61.31 resistance level.
Support: 60.55 / 60.24
Resistance: 61.05/ 61.31