WTI tests May 2015 tops and retreats, API data eyed

• DXY rebound, Iran’s OilMin comments weigh.
• Reverses to 5-DMA.
• Weekly US API crude stockpiles in focus.

WTI (oil futures on NYMEX) bulls remain relentless so far this week, now consolidating the renewed uptick to a fresh two-and-a-half year high of $ 62.55.

WTI sold-off near $ 62.50

The barrel of WTI eased-off multi-month tops, as the buying interest around the US dollar, remains unabated amid fresh nine-month highs reached in 10-year Treasury yields above $ 2.50 levels. A stronger US dollar makes the USD-denominated oil more expensive for the holders in foreign currencies and vice-versa.

Moreover, the latest remarks from the Iranian Oil Minister Zanganeh also weighed down on the black gold. Zanganeh said that the OPEC doesn’t want oil prices above $60 per barrel.

However, the retreat appears limited, as the bulls continue to remain underpinned by the expectations of tighter markets in 2018, especially in the wake of falling US crude inventories and lower rigs count numbers.

Markets now look forward to the US API crude inventory data for the next push higher in the commodity. At the time of writing, WTI trades +0.24% higher at $ 61.88 while Brent rises +0.22% to $ 67.92.

WTI Technical Levels

The resistances are aligned at $62.55/58 (2-1/2 year tops/ May 2015 high) ahead of $62.74/79 (classic R1/ Fib R2) and $63 (round figure). On the downside, supports are located at $61.34 (Jan 8 low), $61.09 (Jan 5 low) and $60.50 (key psychological support).