WTI testing daily highs around $71.00

Crude oil prices are inching higher on Monday around $71.00.
Traders’ focus remain on Iran and potential US sanctions.
API, EIA reports coming in next on Tuesday and Wednesday.

Prices of the barrel of American benchmark for the sweet light crude oil are resuming the upbeat mood today and regaining the $71.00 neighbnourhood.

WTI looks to data

The West Texas Intermediate is trading on a firm note at the beginning of the week after two consecutive daily declines, coming down from last week’s YTD peaks in the boundaries of the $72.00 mark per barrel.

The likelihood of US sanctions against Iran continues to underpin the sentiment among traders and so far keeps occasional dips shallow.

WTI has reverted the initial negative sentiment as trader were adjusting to another uptick in US oil rig count, as per Friday’s report by driller Baker Hughes coupled with increasing US oil production.

Looking ahead, the usual weekly reports by the API (Tuesday) and the EIA (Wednesday) will be in the limelight.

On the positioning front, crude oil speculative net longs dropped to the lowest level since March 13 during the week ended on May 8, as per the latest CFTC report.

WTI significant levels

At the moment the barrel of WTI is up 0.64% at $70.97 and a breach of $69.80 (10-day sma) would aim for $68.55 (21-day sma) and finally $66.86 (low May 1). On the other hand, the next up barrier emerges at $71.86 (2018 high May 10) followed by $72.00 (psychological level).

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