WTI recedes from 2019 highs beyond $64.00/bbl, API eyed

• Prices of the WTI clinched tops beyond the $64.00 mark/barrel.
• Probable supply disruptions in Libya support the upside.
• The weekly report on US supplies by API coming up next.

The upbeat sentiment around crude oil remains unabated so far this week, lifting prices of the barrel of WTI beyond the $64.00 mark and the barrel of European reference Brent crude above the $71.00 handle.

WTI faded the up move, now focused on API report

Rising jitters over potential supply disruptions in Libya have been adding extra legs to the rally in crude oil prices, pushing the barrel of West Texas Intermediate to the $64.60 region earlier in the day, levels last seen in late October 2018.

Prices of WTI have already gained around 53% since late December lows in the $42.20 region, always with the OPEC+ agreement behind the surge in prices. The rally also finds support in the speculative community, where net longs have been rising uninterruptedly since the end of 2018.

Additionally, the persistent offered bias around the greenback also collaborates with the upside momentum in USD-denominated assets.

Later in the NA session, the American Petroleum Institute will publish its weekly report on US crude oil stockpiles ahead of tomorrow’s official report from the DoE.

What to look for around WTI

WTI climbed to new multi-month highs further north of the $64.00 mark per barrel earlier in the day in tandem with escalating military effervescence in Libya. Also supporting the rally in oil prices, a trade deal between US and China appears closer, as per recent comments by officials from both parties. On the broader picture, the bullish view on crude oil stays underpinned by the so-called ‘Saudi put’ in combination with tighter 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+ deal to curb production and US sanctions against Iranian and Venezuelan crude oil exports.

WTI significant levels

At the moment the barrel of WTI is down 0.52% at $63.96 and a breakdown of $61.37 (200-day SMA) would open the door to $60.21 (21-day SMA) and then $57.91 (low Mar.25). On the other hand, the initial hurdle emerges at $64.64 (2019 high Apr.9) seconded by $68.06 (low Oct.29 2018) and finally $69.60 (78.6% Fibo of the October-December drop).