Oil continuing to test higher, WTI sticking above $70.00
- Crude prices continue to bump higher on expectations of continued supply constraints.
- US supply is continuing to get outrun by demand uptake, but that could change if supply lines begin to pick up again.
Crude oil prices are continuing to find some lift in markets with oil traders emboldened by continued constraints on supply from a withdrawal by Saudi Arabia from a key shipping lane after Houthis attacked two oil tankers recently, and WTI is trading back over 70 per barrel for the time being.
Oil prices continue to push into the high side as supply constraints bolster prices, and WTI barrel costs have recovered from a low of 67.25 last week after knocking sharply back from a high of 75.35 four weeks ago, driven down by rhetoric from US President Trump seeking lower oil prices, as well as a continued build-up in US oil reserves, but surprise drawdowns in barrel counts throughout the US supply chain is helping to put a floor under prices for the time being.
WTI levels to watch
With WTI prices grinding their way up, recent swing highs at 71.70 and 74.75 will represent significant barriers as bullish momentum remains steady but thin, while a downturn will have to break past the last bottom at 67.2 before marking in new lows, with a higher low pattern built in from June's low at 63.55.