Price climbs above $62 as buyers look to break the 200-day moving average
Oil prices are up another 0.8% today as price now looks to secure a break above the $62 handle but more importantly, above the 200-day MA (blue line). In doing so, it would turn the bias/momentum in WTI to be more bullish.
OPEC+ production cuts and sanctions to Iran and Venezuela have been key catalysts in helping to drive oil prices higher this year and the former looks set to continue with Russia so far not showing any signs of dissent ahead of meetings in May and June.
If price holds a break above the 200-day MA, further resistance is then only seen at the 61.8 retracement level of the sharp fall last year - at $63.71. Thereafter, it's very much smooth sailing towards $68 at the very least.
I've noted previously that this would be a key level that should hold any further upside move in oil but it's hard to make do with just that while we have to wait on the OPEC+ decision in May/June as seasonal patterns are still providing a tailwind for oil. Let's see if the key level here will prove to be a defining one in the coming sessions, otherwise it's tough to ignore the upside potential if the break comes about.
