WTI bounces off multi-year low amid hopes of oil majors’ actions

WTI futures for June bounce off $14.07, its lowest levels since March 1999, to $15.72 as the oil trading begins for Tuesday. The energy benchmark recently seems to cheer the upbeat comments from the US and Canada that seek oil majors’ actions.

US President Donald Trump cited the recent slump in oil prices as an opportunity to stock up the reserves while calling for oil producers to do more. Even so, when asked if he would like OPEC+ nations to make more cuts, states we have already done that.

On the other hand, the Premier of Canada’s Alberta province, Jason Kenney, asked for help from the Federal Government and other institutions like the Department of Energy (DOE). The reason could be cited from Canada’s heavy reliance on oil.

Also might be helping the oil price could be the chatter surrounding likely Saudi intervention during the late-US session on Monday.

The black gold’s May contract, slumped into the negative territory the previous day. The reason for the fierce action could be the nearness to the expiry day. i.e. Tuesday.

Given the latest hints, oil traders will keep eyes on any surprise announcements from the major, like OPEC or the US or anywhere else, for fresh impulse. Also likely to direct the energy prices will be the weekly oil stock data, for the period ended on April 17, from the American Petroleum Institute (API). The private inventory figures earlier surged 13.143M.

Technical analysis

A short-term falling trend line near $16.30 acts as an immediate upside barrier while $10.00 becomes the bear’s favorite below the latest low of $14.00.