West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices is heading for the biggest weekly gain since early March on optimism the recovery in demand from the COVID-19 pandemic is improving as the price for (WTI) is up almost +7% this week.
The positive momentum has helped oil break out of its broad boundaries between $57.00 to $61.50 a barrel, where prices were had been stuck since mid-March.
Meanwhile, the market is also facing an increase in supply in the coming months, although OPEC said this week, rising demand should trim global stockpiles, while the IEA said the lingering glut was clearing.
The OPEC+ alliance is scheduled to start adding more barrels from May.
Next, eyes turn to the Baker Hughes oil rig count update. Due to the upsides break, the technical assessment remains neutral.