WTI jumps to fresh multi-year highs above $73
|- Improving demand outlook continues to boost crude oil prices.
- Nuclear talks between Iran and US come to a halt after Iran's presidential election.
- Focus shifts to weekly crude oil stock data from US.
Crude oil prices registered gains for the fourth straight week last week and preserved the bullish momentum on Monday with the barrel of West Texas Intermediate (WTI) reaching its highest level since October 2018 at $73.67. At the moment, WTI is rising nearly 3% on a daily basis at $73.50.
The improving demand outlook remains the primary driver behind rising crude oil prices as the normalization in major oil consumers continues at a robust pace.
Additionally, investors seem to have turned cautious regarding the possibility of the US lifting sanctions on Iran with nuclear talks coming to a halt after the hardline judge Ebrahim Raisi wins the presidential election. This development seems to be supporting rising oil prices from the supply side.
Later in the week, the American Petroleum Institute (API) and the US Energy Information Administration will release the weekly crude oil stock data.
Meanwhile, the Bank of America Global Research announced over the weekend that it revised its 2021 average price forecast for WTI to $65 amid prospects for demand growing more quickly than supply over the next few quarters.
Technical levels to watch for
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