WTI clings to gains above $63.00 on improved risk sentiment

• Crude oil prices ease from fresh 2019 highs near $63.40.
• OPEC+ deal, risk-on mood support the upside.
• US oil rig count went up by 15 last week.

Prices of the barrel of West Texas Intermediate have clinched fresh multi-month highs near $63.40 earlier in the day, shedding some ground soon afterwards.

WTI stronger on risk sentiment

The barrel of the American benchmark for the sweet light crude oil are up for the second session in a row on Monday, managing to advance to fresh 2019 highs in the $63.40 region earlier in the day, levels last traded in early November 2018.

Positive risk-on sentiment stemming from auspicious headlines from the US-China trade talks, solid prints from the US labour market on Friday and the resurgence of geopolitical risks around Libya have all been sustaining another bullish attempt in crude oil prices, at the same time accompanied by a softer tone around the greenback.

The up move in crude oil has left behind last week’s unexpected build in US supplies along with rising US oil production and an uptick in oil rig count, focusing instead on the broader risk-appetite trends.

What to look for around WTI

WTI climbed to fresh yearly highs further north of the $63.00 mark per barrel during early trade, once again confirming that the bullish view on crude oil remains far from abated. In the same line, the barrel of European reference Brent crude managed to close above the psychological $70 mark for the first time since early November 2018. The recent upside pressure in oil prices has been promoted by the potential of further turmoil in Libya after the Libyan National Army (LNA) has approached Tripoli. Also supporting the rally in prices and the upbeat sentiment in the risk-associated complex, a trade deal between US and China appears closer following extra progress made at recent meetings. On the broader picture, the so-called ‘Saudi put’ combined with tight conditions in the US markets (amidst US net imports in historic low levels and the rising activity in refiners ahead of the summer session), the current OPEC+ deal to curb production, ongoing US sanctions against Iranian and Venezuelan crude oil exports and speculative positioning continue to sustain the upside momentum in crude oil.

WTI significant levels

At the moment the barrel of WTI is up 0.18% at $63.22 and a breakout of $63.39 (2019 high Apr.8) would open the door for $63.74 (61.8% Fibo of the October-December drop) and finally $68.06 (low Oct.29 2018). On the other hand, the next support is located at $61.42 (200-day SMA) followed by $59.81 (21-day SMA) and then $57.91 (low Mar.25).