Crude oil WTI prints a fresh 2018 high close to $70.00 handle

• Crude oil WTI prints a new yearly high of $69.56 a barrel but closed lower on Thursday. 
• The US dollar rebound weighed on crude in the late European session.

Crude oil WTI continued its advance on Thursday’s trading and printed a new 2018 high of $69.56 a barrel only at a shouting distance from the 70.00 handle.

The West Texas Intermediate benchmark is trading at $68.21 down 0.80% on the day but still at levels not seen since late 2014. In late European session, the greenback staged a come back across the board and the US Dollar Index is now trading in the 89.90 region. 

The concerns over Russian sanctions and that Trump might not renew the Iranian deal are bullish for oil as both countries are big oil producers. Diplomatic tensions can create supply disruptions.  

Crude oil prices are being underpinned by oil-producing countries including OPEC (Organization of the Petroleum Exporting Countries) and Russia with an agreement to cut production in order to create a supply squeeze. The supply-cut agreement is in effect since January 2017 and has been extended until the end of 2018. In June the members will meet and discuss any adjustments that need to be made. 

Oil is rising because of the geopolitical risks in the Middle-East and uncertainties with Russia and Iran, while supply is getting tighter because of the output cut agreement and the global economy is in a relatively good shape which keeps the demand up for the black gold. Also worth mentioning is the decreasing Venezuelan production. 

WTI crude oil 4-hour chart

The trend is bullish. Resistance is priced in at 68.75 supply level and the 70.00 figure. Supports are seen at the 68.00 figure and at the 67.25 demand level.