WTI climbs to 2-day highs, approaches $61.00

• The WTI reverses the recent weakness and regains $60.00.
• Immediate support emerged around Friday’s low at $58.60.
• The API, EIA reports come in later in the week.

Crude oil prices regain the smile at the beginning of the week and push the barrel of West Texas Intermediate back above the key barrier at $60.00.

WTI looks to Texas, data, risk

Prices of the WTI navigate the area of 2-day highs above $60.00 and resume the upside following two consecutive daily pullbacks.

The uptick in crude oil prices comes amidst the persistent weakness hitting the dollar, while activity in Texas is expected to gradually return to normality following the recent extreme freezing weather conditions.

On another front, traders are expected to shift their attention to the upcoming OPEC+ meeting on March 4^th. Consensus remains tilted to the cautious side, as the cartel could decide to start pumping extra oil to the markets in light of the sharp recovery in prices seen as of late.

Later in the week, the usual reports on US crude oil stockpiles by the API and the EIA are due on Tuesday and Wednesday, respectively.

What to look for around WTI

Prices of the West Texas Intermediate met decent support in the $58.60 region following fresh 13-month peaks above the $62.00 mark on February 18. Increasing inflows into commodity-based ETFs have been supporting the rally in crude oil along with the persistent drop of US crude oil supplies and freezing weather conditions in Texas, all amidst the favourable context for riskier assets coupled with dollar weakness. In addition, the firm growth prospects in China add to the acceleration of the vaccine rollout in Europe/rest of Asia and morph into rising expectations of a strong rebound post-coronavirus pandemic.

Key events in the crude oil space: OPEC+ meeting on March 4^th.

Eminent issues on the back boiler: Higher crude oil prices favour US shale growth. Demand-supply balance could prompt a moderate correction lower later in the year.

WTI significant levels

At the moment the barrel of WTI is up 3.05% at $60.71 and faces the next hurdle at 62.25 (2021 high Feb.18) seconded by $65.62 (2020 high Jan.8) and finally $66.58 (2019 high Apr.23). On the other hand, a breach of $58.60 (low Feb.19) would expose $57.43 (low Feb.12) and then $52.22 (55-day SMA).