WTI eases-off three-year tops at $ 67.75, eyes US rigs data
- Strong China crude oil imports, Syria tensions and upbeat fundamentals remain supportive.
- Pauses rally as traders await the US rigs count data for fresh impetus.
WTI (oil futures on NYMEX) extended its five-day winning streak on the final trading day of this week and reached the highest levels since December 2014, underpinned by escalating Syria tensions, upbeat OPEC and IEA monthly reports and strengthening demand for the commodity from China.
China’s crude oil imports jumped in the month of March to reach the second highest on record, China Customs data showed. Meanwhile, US President Trump’s comments that an attack on Syria “could be very soon or not so soon at all”, fuelled concerns over a Russia-US war and boosted the demand for the black gold.
Meanwhile, oil prices also find support from the latest International Energy Agency's (IEA) monthly Oil Market Report (OMR) that showed global oil supply tumbling in March. However, over the last hour, the prices retreated from multi-year highs, as investors seek to take profits off the table after a 9% weekly gains so far this week and ahead of the US rigs count data.
WTI Technicals
At $ 67.40, the next resistances are aligned at $ 67.75 (3-year tops), 68 (round number) and $ 68.78 (classic R2/ Fib R3). To the downside, supports are located at $ 66.73 (daily pivot), $66 (5-DMA) and 64.73 (20-DMA).