Can’t keep a good oil down
The past hour has seen a decent recovery in oil prices and with that WTI is back up on the day trading 0.1% higher as it looks to test a break of the $75.00 handle currently. Oil prices moved lower earlier as risk sentiment was dampened at the start of European trading but the latest move here continues to show that buyers are very much still keeping the commodity underpinned.
For WTI crude, the move higher sees price start to climb back above the 100-hour MA (red line) and that means near-term bias remains more bullish. But the key here is to hold a break above the $75.00 level, and that makes for a good platform to retest the upside seen last week.
The same fundamentals still apply for oil with Iran sanctions being the key but there is a latest development potentially threatening supply as Hurricane Michael threatens to evolve into something bigger that may hit US production.
The latter will be a key concern for the oil market this week and with worries over supply still lingering, that is likely to keep oil underpinned still and the chart is agreeing with that.