WTI crude climbs to $65.45
Oil looked like it could crack earlier today but after a wild ride back and forth from $63.75 to $65.25 several times, it’s broken higher.
The resilience in crude is impressive. India’s drop in demand combined with higher OPEC production and potential barrels from Iran are reasons for worry but the market continues to focus on vaccinations and auto demand. Some market watchers are saying we could hit all-time highs in demand by year-end.
For me, signs of underinvestment are everywhere along with OPEC’s commitment towards higher prices ensures an ongoing bull market. Of course, there will be twists and turns and we’ve come a long way in 7 months.
Technically, today’s break higher is positive but keep a close eye on price action into settlement. In the bigger picture, Brent needs to get above $70 to break resistance and WTI will need to climb above $68. The problem is that once those levels give way, you have the risk of OPEC coming back to the table.