Forex Marketz Daily Forex News – Fully Markets Update
Looking at the front month U.S. West Texas Intermediate (WTI) crude oil futures contract has soared higher and above $62 per barrel overnight. The U.S. oil futures contract surged $3.00 yesterday as prices rallied from $59 per barrel.
On Monday, the WTI crude oil contract was up 5.5 percent at one point. This was its biggest intraday gain since 9 November. This was when news broke about a coronavirus vaccine from Pfizer was effective.
Even though the rally was impressive, the WTI contract could not take back a key high price point at $62.25 per barrel.
Crude oil is being supported from a return to oil operations in Texas and the Gulf of Mexico. Even though the United States has surpassed 500,000 Covid-19 deaths, the rate of new infections has dropped as well as hospitalizations and new deaths.
This is also the case for the European Union and United Kingdom. Also the pace of global coronavirus vaccinations has improved. The United Kingdom has also put forward a four stage plan to reopen their economy.
As economies start to reopen, the demand for crude oil should also improve. Elsewhere, Iran and the United States have restarted informal talks. The European Union could act as head negotiator here but there are a number of road blocks. Iran wants the United States to lift all sanctions before talks begin and the U.S. has said no.
Daily West Texas Intermediate (WTI) Technical Analysis
Looking at price action on the above daily MT 4 price chart, the U.S. crude oil contract is well above $60.70 per barrel and looking to make a challenge of the 18 February high price point at $62.25 per barrel.
The next upside barrier lines up at the 23 April 2019 high price point at $66.58 per barrel.
A break below the 19 February low price point at $58.60 per barrel opens the door to challenge the 12 February low at $57.43. The next layer of technical support lines up at $52.22 per barrel.
