Oil is threatening to break out

Technical Analysis

WTI up 1% on the day

Oil has climbed above the May highs and yesterday closed at the highest since 2018. The March high of $67.98 is now in range.

The was a report yesterday that OPEC+ would stick to the script through July at Tuesday’s meeting but there’s a big question mark about what comes beyond that.

The main driver though is Iran and a nuclear deal and how much production they could bring back online quickly if they come to the market.

The chart above looks great but before you get too excited note that brent is still below the May high of $70.24. It’s trading at $69.77. That level is much bigger for crude overall and for OPEC than WTI.

Still though, with covid cases falling in India and vaccination continuing, there are hopes for better demand. Even the jump in the US dollar isn’t derailing the enthusiasm in the oil market.

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