WTI oil hit a 5-month high despite a stronger USD, buoyed by positive manufacturing data
On Monday, West Texas Intermediate (WTI) crude oil, the U.S. benchmark, rose around 1% to a five-month high.
This increase was driven by expectations of economic growth in the U.S. and China, alongside concerns over tightening supplies due to OPEC+ output cuts and attacks on Russian refineries.
In the U.S., the Institute for Supply Management (ISM) reported expanded business activity in March, indicating economic resilience.
Last Friday's data also showed moderation in the personal consumption expenditures (PCE) price index.
Despite this, many still anticipate a potential June Fed rate cut to stimulate economic growth and oil demand.
In China, manufacturing activity expanded for the first time in six months.
Meanwhile, industry sources suggest that Saudi Arabia may consider raising the official selling price (OSP) for Arab Light crude in May, following the strengthening of Middle East benchmarks last month.
Based on technical assessment, the Relative Strength Index (RSI) 3-day 'lookback' indicator is positive, with bearish divergence forming, while the Moving Average Convergence Divergence (MACD) is positive.
Additionally, the ADX (trend) indicator supports an overheating bull trend.
With the $83 resistance surpassed traders should reassess their positions and adapt strategies, considering potential pullbacks due to bearish divergence.
Immediate support is around $79.80-90; reaching this level could trigger a bullish response.
Daily Chart West Texas Intermediate (WTI)
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