WTI consolidates near 3-week highs sub $ 52 mark

WTI (US oil futures on NYMEX) is seen consolidating the renewed uptick seen in Asia, although remains just below $ 52 mark, as the bulls take a breather before the next push higher.

The bullish momentum in the black gold was triggered by stronger Chinese crude imports data that showed firming oil demand from the world’s second largest oil consumer.  The Chinese January-September crude oil imports grew 12.2% at 318 million tonnes, the data showed.

Moreover, oil prices also derived support from reports of escalating tensions between the Iraqi government and Kurdish forces threatened supply, as Iraqi forces on Sunday began moving towards oil fields and an important air base held by Kurdish forces near the oil-rich city of Kirkuk.

Furthermore, potential renewed US sanctions against Iran combined with falling rigs count also collaborated to the extension of last week’s gains in the commodity. US President Trump refused to continue to certify the 2015 Iran nuclear deal on Friday.

Heading into a new week, attention now turns towards the weekly crude supplies data from the US, while geopolitical developments will be also closely watched for fresh incentives on the prices. At the time of writing, WTI rallies +0.86% to $ 51.89, while Brent rises +1.10% to $ 57.80.

WTI Technical Levels

Higher-side levels: 52 (round number/ 3-week tops), 52.43 (Sept 26 high), $53.21 (Apr 16 high)

Lower-side levels: 51.75 (daily pivot), 51.50/ 51.42 (psychological levels/ 5-DMA), 50.99 (20-DMA)