Crude oil WTI perfect storm, prices blast higher at $65
- Several catalysts brought the oil prices up more than 4% on Tuesday.
- The geopolitical context, weak USD and China talks of free trade created the perfect storm.
Crude oil WTI is trading at around $65.82 as it blasted up 4.11% on Tuesday. The weak US Dollar, geopolitical turmoil in Syria, Venezuela, Iran, Russia and North Korea are some of the catalysts behind the move. However, Trump’s pledge to respond “forcefully” to the chemical attacks in Syria and China’s promise to open up its economy and lower import tariffs are the factors that tipped the balance and lead the oil market into a huge breakout. Brent crude oil soared above $70 a barrel.
“It’s not so much ‘risk on/risk off’, as it is ‘trade war on/trade war off’ and, at the moment, we’re ‘trade-war off’,” commented Jasper Lawler from London Capital Group.
The API weekly Crude Oil Stock data is due at 20:30 GMT, it is unlikely it will bring any major change considering the overall market context.
Meanwhile, “Saudi Arabia is likely targeting oil prices at $80 a barrel to boost the valuation of its oil giant Aramco ahead of its much-hyped IPO and to help finance increasingly ambitious domestic policy plans” according to Bloomberg.
Crude oil WTI weekly chart
Oil has recouped last week’s losses on Tuesday and now bulls are eying the high at $66.55.
Crude oil WTI daily chart
Crude oil broke above $65.42 swing high.
Crude oil WTI 4-hour chart
The bullish momentum is strong. Next resistance ahead is seen at the $66 figure and at yearly highs at $66.66. Immediate support is seen at $65.42 swing high, followed by $64.53 demand zone.