- Oil at multi-month tops as US is set to end Iran sanction waivers.
- Upbeat US macro news, unexpected draw in US inventories remain supportive.
- Focus shifts to US weekly fuel stocks data, risk sentiment amid thin trading.
Having settled the Good Friday week almost unchanged near the 64 handle, WTI (oil futures on NYMEX) kicked-off the week on a bullish note, clinching fresh five-month tops of 65.80 after the Washington Post (WaPo) reported on Sunday that the US is planning to end the waivers given to the current buyers of Iranian oil on the sanctions.
The WaPo quoted US two State Department officials saying that the US Secretary of State Mike Pompeo will announce “that, as of May 2, the State Department will no longer grant sanctions waivers to any country that is currently importing Iranian crude or condensate”.
WTI opened this week with a $1.60 bullish gap and rallied nearly 2.5% on the above report, now consolidating the rally near the midpoint of the 65 handle. Besides, the latest oil-bullish news, the overall sentiment around the black gold remains buoyed by upbeat US earnings, better Chinese and US fundamentals.
Further, the ongoing OPEC+ cuts combined with the recent surprise drawdown in the US crude stockpiles data also continue to boost the upside in the prices. It’s worth noting that the US oil has climbed more-than 40% so far this year.
Looking ahead, it remains to be seen if the rally can find takers above the 66 mark, as attention now shift towards the US weekly crude stockpiles data while full markets are expected to return tomorrow after the Easter holiday-break.
WTI Technical Levels
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