WTI oil maintains firm tone and holding within narrow consolidation under psychological $60 barrier (fresh highs in 2 ½ years) which was dented on strong bullish acceleration on Tuesday.
Oil price was boosted by stronger than expected draw in crude stocks after API report on Wednesday shows fall in US oil inventories by 6 million barrels, compared to forecasted 3.8 million barrels draw.
Markets eye today’s release of EIA weekly crude inventories report which could further inflate oil prices on release above forecasted 3.9 million barrels draw.
Oil price maintains firm bullish sentiment on ongoing OPEC-led production cut which was extended until the end of 2018 and could boost oil prices.
Bulls eye next strong barrier and target at $61.71 (13 May 2015 lower top) to generate fresh bullish signal on firm break.
Meanwhile, near-term price action may remain in extended consolidation with stronger downticks not ruled out, as slow stochastic is in deep overbought territory on daily chart.
Rising 10SMA ($58.31) is expected to ideally contain extended dips.
Res: 60.00; 60.25; 61.00; 61.71
Sup: 59.32; 58.86; 58.54; 58.31