WTI has risen more than 50% since 2017 lows last June

While inventories are being drawn at a faster pace than markets have expected with OPEC  succeeding in rebalancing the oil market, the price of a barrel of oil is making fresh highs in thinner markets with the US on holiday today. 

US Dollar Index continues under pressure, at 3-year lows

WTI has rallied to $64.70 the high on Tuesday from a low of $64.00 and recovered from a rising U.S. rig count. Casting minds back to Friday's Baker Hughes statement that the number of rigs drilling for oil in the U.S. last week rose by 10 to 757 probably coincides with the rapid increase of as U.S. shale production. With an increase in long investor speculative positions and with a falling dollar, and OPEC and 10 other producers outside of OPEC, including Russia, who had agreed late last year to extend their accord to cut production by 2% through the end 2018, oil prices have now risen more than 50% since 2017 lows last June.

WTI levels

With the price just below 64.75 (3-year highs) bulls can target $ $65 and $ 65.50 (psychological levels) on further upside. However, while the daily sticks are technically leaning bullish with RSI extending into overbought territory and momentum still highly positive, the 4hr chart points to a more consolidative picture for the meantime. On the flip side, supports are seen at $64.03 (5-DMA), $63.50 (psychological level) and $63 (10-DMA).