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.