Both Brent and WTI open in Asia at their New York highs this morning, both within shouting distance of their post-OPEC rally highs. Geopolitical tensions and a shutdown at Libya’s largest oilfield continue to support crude, with Brent spot trading at $55.90 and WTI $53.00, up 1.8% and 1.9% respectively.
We expect these factors to carry more weight than hard data in the price discovery process for the near term, with Brent’s price action looking the more constructive of the two. Brent’s 2017 high at $57.00 is its next target with the key level for WTI at $54.60. We have now fully unwound early March sell-off.
Look for crude to be bid on any meaningful dips today as traders stay glued to their news feeds for short term direction.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.