WTI Crude Hit Highest Level in 2-Weeks – Outlook Positive
Feb, 19th 13:57
WTI crude prices extended gains to hit their highest level in nearly two weeks on Monday, buoyed as Asian shares joined a global recovery in equity markets and as worries grew over tensions in the Middle East.
Prime Minister Benjamin Netanyahu said on Sunday that Israel could act against Iran itself, not just its allies in the Middle East, after border incidents in Syria brought the Middle East foes closer to direct confrontation.
U.S. West Texas Intermediate crude for March delivery was up 54 cents, or 0.91 percent, at $62.11 a barrel by 0600 GMT, after earlier touching its highest since Feb. 7, 2018. Brent crude was up 35 cents, or 0.52 percent, at $65.18, after rising more than 3 percent last week.
The U.S. Energy Information Administration (EIA) reports that U.S. crude oil production averaged 10.2 million b/d up 100,000 b/d from the December level. EIA says that average annual U.S. crude production will increase from 9.33 million b/d in 2017 to 10.6 million b/d in 2018 to 11.2 million b/d in 2019. So, this year and next we will surpass the previous record of 9.6 million b/d set in 197o, perhaps surpassing Russia and Saudi Arabia (i.e., in terms of crude oil. We already produce more overall oil liquids than both).
“The upside momentum since WTI hit last week’s low of $58 has been continuing,” said Tetsu Emori, CEO of Emori Capital Management in Tokyo.
“Oil got mild support from gains in Asian equity markets, but has been getting pressure from the rise in U.S. rig count and a slight recovery in the dollar.”
On the technical charts, WTI crude is trading sideways. The market is trading above all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 48.88 and the MACD is ready to make a positive crossover above the signal line.
Buy digital Call options between 61.97 and 62.32, valid until 23:00 GMT February 19th 2018