WTI recedes from 2019 highs near $62.80

• Prices of the WTI clinched fresh yearly highs near $63.00/bbl.
• API reported a nearly 3M barrel build late on Tuesday.
• EIA report on supplies coming up next.

The upbeat sentiment around crude oil remain unchanged for the time being, pushing the barrel of WTI to new YTD tops in the $62.80 region, albeit receding somewhat afterwards.

WTI firmer, now looks to EIA

Prices of the barrel of the American benchmark for the sweet light crude oil are extending the up move for yet another session today despite shedding some ground after hitting 2019 highs near the $63.00 mark.

The selling bias around the greenback and a generalized upbeat mood among traders following optimistic results in the Chinese economy has been lending extra support to the rally. Chinese data has, in turn, helped mitigating concerns over a slowdown in the Asian economy, considered the largest oil importer.

Later in the session, the DoE will publish its weekly report on US crude oil supplies during last week ahead of Friday’s report on US drilling activity by Baker Hughes.

What to look for around WTI

WTI has recorded fresh multi-month tops just below the $63.00 mark per barrel today. The ongoing rally remains well supported by traders’ sentiment in line with an improved mood surrounding the risk-associated complex. In addition, the underlying bullish view in crude oil is expected to persist propped up by the so-called ‘Saudi put’, tight conditions in the US markets (amidst US net imports in historic low levels and the rising activity in refiners ahead of the summer session), the current OPEC+ agreement to cut oil output and ongoing US sanctions against Iranian and Venezuelan crude oil exports. In addition, speculators increased their long exposure in oil during the week ended on March 26, taking net longs to the highest level since late October 2018. Further out, the OPEC+ could announce an extension of the current agreement to curb oil production at the cartel’s meeting in June.

WTI significant levels

At the moment the barrel of WTI is losing 0.16% at $62.28 and faces the next support at $61.56 (200-day SMA) followed by $58.84 (21-day SMA) and then $57.91 (low Mar.25). On the flip side, a breakout of $62.79 (2019 high Apr.3) would open the door for $63.74 (61.8% Fibo of the October-December drop) and finally $68.06 (low Oct.29 2018).