WTI jumps to fresh multi-week highs above $65

WTI continues to rise after closing in the positive territory on Monday.
Improving demand outlook is helping crude oil prices push higher.
Focus shifts to American Petroleum Institue's (API) Weekly Crude Oil Stock data.

Eren Sengezer FXStreet

The barrel of West Texas Intermediate (WTI) gained more than 1% on Monday as the latest PMI data from the euro area and the US revealed that the business activity in the manufacturing sector continued to expand at a robust pace.

Demand dynamics continue to drive oil prices

With large states in the US continuing to ease the coronavirus-related restrictions and Europe looking to allow international travel, crude oil prices continued to rise on the back of an improved demand outlook on Tuesday. As of writing, WTI was trading at its highest level since mid-March at $65.65, gaining 1.8% on a daily basis.

Later in the day, the American Petroleum Institue's (API) Weekly Crude Oil Stock report will be looked upon for fresh impetus.

On a negative note, India is having a difficult time dealing with the surging number of COVID infections and deaths, forcing investors to adopt a cautious stance.

Assessing the impact of the severe situation in India on the oil market, "the uncontrolled coronavirus outbreak in India will continue to pose the biggest downside risk to oil prices for now," noted OCBC analysts. "Bloomberg reported in April, gasoline consumption in India probably fell 6% and diesel about 2%. This consumption weakness is likely to continue into this month, given the ever-worsening daily cases in India."

Technical levels to watch for

WTI

Overview
Today last price	65.61
Today Daily Change	1.15
Today Daily Change %	1.78
Today daily open	64.46

Trends
Daily SMA20	61.97
Daily SMA50	62.06
Daily SMA100	57.35
Daily SMA200	49.34

Levels
Previous Daily High	64.62
Previous Daily Low	62.88
Previous Weekly High	65.4
Previous Weekly Low	60.64
Previous Monthly High	65.4
Previous Monthly Low	57.66
Daily Fibonacci 38.2%	63.96
Daily Fibonacci 61.8%	63.55
Daily Pivot Point S1	63.35
Daily Pivot Point S2	62.24
Daily Pivot Point S3	61.61
Daily Pivot Point R1	65.09
Daily Pivot Point R2	65.73
Daily Pivot Point R3	66.84

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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