fundamental News - OIL

WTI oil price keep pushing higher now trading at  $67.87, following its run-up to the 2 1/2 years high of $67, during Monday’s Asia-Pacific session. The energy benchmark portrayed a week-start gap-up while testing $67.00 as fundamentals concerning Saudi Arabia and the US coronavirus (COVID-19) aid package played their role. Also favoring the oil bulls could be China’s trade figures. Though, a lack of major data/events as well as the Sino-American tussle probes the quote’s immediate upside.

Oil buyers also benefited from news suggesting Saudi Arabia’s hike in the official selling price (OSP) for its Arab Light crude to Asia by $1.40 per barrel. On the same line, Wall Street Journal’s (WSJ) news suggesting Iran-backed Houthi military targeted Saudi Arabia’s oil port and facilities also favored the WTI upside.

It’s worth mentioning that China’s 60% jump in Trade Balance (USD terms) during January and February, to $103.25B, offered extra strength to the prices of the black gold.

Looking forward, oil traders should wait for the US traders’ reaction to the latest passage of the covid relief package. Though, the bulls can keep reins amid expectations of further economic recovery, backed by the stimulus and vaccine hopes, as well as challenges to the oil supply, due to the turmoil in Saudi Arabia and OPEC+ production cuts until at least April.

Technical analysis
Downside break of April 2019-November 2019 resistant (now support) near $65.00 will signal correction selling. Bullish traders are aiming for $70.00 the price last seen in October of 2018.



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