WTI tests 4-week tops amid increased investor optimism

Oil futures on NYMEX extend its recent run of gains and now regain $ 54 mark, in a bid to score fresh four-week highs.

The black gold remains strongly bid, despite broad based US dollar strength, as investors continue to remain bullish on the commodity amid high compliance with the OPEC production cut deal reached last year.

Data from the Intercontinental Exchange showed on Monday, speculators raised their bets on a rally in Brent oil prices to a record last week. This report comes after Friday’s CFTC data revealed that the net long US crude futures and options positions in the week to Feb 14 were at a record.

Oil markets now eagerly await the US crude supplies data due to be published the API tomorrow, which will provide fresh insights on the US supply-side scenario.

WTI technical levels        

A break above $ 54.50 (psychological levels) could yield a test of $ 55.24 (Jan 3 high). While a breach of support at $ 53.73 (previous low) would expose the 50-DMA support of $ 53.09.