WTI closed the day 2.16% higher in yesterday's trading
Yesterday's spike coincided with further tensions surrounding Iran as Saudi Arabia's crown prince made a visit to the US, raising prospects of a more aggressive stance towards Iran and its nuclear program.
But just like the S&P 500 break that was highlighted earlier yesterday, it is not clear waters just yet.
The 26 February high of $64.24 will be key to watch to justify a further move to the upside. Otherwise, a double-top formation here builds a strong case for more downside potential considering the ramp up in US shale oil production - as well as the fact that we're getting closer to the mid-year summer lull in Europe.
Looking ahead, seasonal patterns show that April has been a decent month for WTI historically. In terms of performance (table below shows % performance), it has gained in 7 out of the last 10 Aprils stretching back to 2008.
And if you look at average performance over the last ten years, April returns even outweigh that of February - which is the most consistent month of gains in terms of seasonal patterns for WTI.
However, in more recent times, 3 out of the last 5 Aprils show that the commodity has declined during the month. And that is something more telling about the performance in oil over the last couple of years.
