West Texas Intermediate (WTI) crude oil is closing in on the three-month cap at $67.00-85

May 18, 2021 - 1 month ago
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West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, displays another round of bullish traction as prices climb closer to the three-month peak at $67.00-85 as the US Dollar Index (US DXY) weakens.

To some surprise, the number of passengers at U.S. airports jumped to the highest since the pandemic began, a sign of the domestic travel revival that boosted fuel consumption, which has offset concerns around weaker consumption in India.

(WTI) is up nearly +30% this year amid optimism fuel demand will increase as the vaccination drive accelerates across major economies and boosts mobility.

According to Transportation Security Administration data, passengers checking in through security at U.S. airports surged to 1.85 million on Sunday, the highest since early March 2020.

On Friday, Energy services firm Baker Hughes reported the number of active U.S. rigs drilling for oil was up by eight at 352 last week, following an increase of two rigs the previous week.

According to Baker Hughes, the total active U.S. rig count, which includes those drilling for natural gas, also climbed by five to stand at 453.

Viewing the technical assessment, the rebound from the uptrend (now risen to) $62.80-$63.20 could see a short squeeze to the near-term cap at $67.00-85. Reassess from there.

A New York close beneath $62.80-$63.20 would negate the upside and instead exposes the region of $59.00-60. Reassess from there.

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