WTI stronger, regains the $63.00 mark and above

• Prices of the WTI move further north of the $63.00 mark.
• Saudi oil tankers attacked in the Persian Gulf.
• Geopolitical tensions remain on the rise, adding upside pressure to prices.

Prices of the barrel of American reference for the sweet light crude oil are rallying on Monday and returning above the key $63.00 mark.

WTI higher on trade, geopolitics

Prices of the WTI are inching higher today in response to increasing US-China trade tensions, all after the US more than doubled up tariffs on US imports of Chinese goods worth $200 billion on Friday and threatened to impose extra tariffs in the next months. On the opposite side of the road, China announced tariffs on US products worth around $60 billion.

Adding to the up move in prices, Saudi Arabia said two oil tankers were sabotaged when they were approaching the Strait of Hormuz on Sunday, although culprits still remain elusive. Still on the geopolitical side, US-Iran effervescence remain far from abated and have raised even more as of late after the US deployed an aircraft carrier to the Persian Gulf.

Also collaborating with the recovery in prices of the West Texas Intermediate, the EIA reported a nearly 4M barrel draw of US crude oil supplies during last week along with a drop in US oil rig count, as per the latest report by driller Baker Hughes.

What to look for around WTI

Prices of the WTI have met some decent contention around the psychological $60.00 mark per barrel earlier in the month. However, the resurgence of US-China trade concerns and rising geopolitical tensions have been sustaining the rebound in prices. Furthermore, the constructive outlook around crude oil is also underpinned by speculative positioning, the so-called ‘Saudi put’ and the ongoing OPEC+ deal to curb oil output.

WTI significant levels

At the moment the barrel of WTI is gaining 2.28% at $63.11 and a break above $63.74 (61.8% Fibo of the October-December drop) would aim for $64.66 (high Apr.30) and finally $66.46 (2019 high Apr.23). On the downside, the immediate support emerges at $59.98 (low May 6) seconded by $59.63 (50% Fibo of the October-December drop) and then $56.63 (100-day SMA).