Oil is pushing higher again this week, with the rally in the last couple of sessions taking us through technical resistance and providing a further catalyst for gains.
Brent stumbled at $70, but not for long, while WTI is now running into resistance around $65. Dollar weakness may be contributing to the surge, while the potential for supply disruptions in Libya may also add to the bullish case.
Brent Daily Chart
With prior resistance and the 200/233 simple moving average combination now overcome, further resistance ahead could lie around $72.50-73.50, with $75.50-76.25 being notable above here. A keen eye will remain on momentum indicators for any indication that it’s slipping as we scale new highs.
It promises to be an interesting week for oil though, with the usual inventory data being accompanied by reports from OPEC and IEA which should provide additional insight on the latest production numbers and expectations for demand.