West Texas Intermediate (WTI), the New York-traded benchmark for U.S. crude prices climbed out of the bearish trenches on Monday from the intraday lows of $21.26 and rallied to an intraday day peaked at $24.97 as the US Dollar index slips away from the 3-year highs of 103.70 as hopes grew overnight that Saudi Arabia and Russia might reconcile after their deal to cut oil production fell apart more than two weeks ago.
Both crude benchmarks have dropped for four straight weeks, with (WTI) slumping nearly -36% last week, its steepest slide since the outset of the U.S.-Iraq Gulf War in 1991.
The value of oil prices has lost roughly halved after an unexpected oil price war erupted between producers Russia and Saudi Arabia earlier this month.
Oversupply is so extreme that the United States plans to send a special energy envoy to Saudi Arabia to work with the kingdom on stabilizing the global oil market, U.S. officials said on Friday.
From the technical outlay, the given overnight’s advance of +15% must now see the bulls continue their upward rhythm and take the contest to the region of last week’s rejection around the $28.60-85 level. Reassess from there.
The bullish foundations hold from $16.00-$19.00 (on the wide), with the immediate support viewed from $20.00-40 to $21.00.