WTI is up by nearly 1% on the day now
Oil has caught a bit of a bid since the top of the hour as WTI pushes up to break away from the $66.50 level to rise a high of $66.86 on the day. There isn’t any headline in particular of note but I’m looking towards this headline from overnight as one of the more plausible reasons.
Despite a build in private inventory, focus in oil markets now is on OPEC and Iran (sanctions) and that will be a strong driving force still this week and next week as traders continue to mull over the ramifications of Iran’s sanctions and how it impacts the global oil market.
A simpler explanation perhaps is that this is more of a technical bounce after price tested the trendline support shown above. For now, the August low at $64.43 and the June low at $63.59 will be the two key levels in focus. As long as price stays above that, the upside momentum is still somewhat intact.
Break below however, it opens up a slippery slope back towards $60.