WTI OIL Outlook: Oil Price Eases from New 2019 High but Bulls Look for Further

WTI oil eases from new 2019 high at $66.17, as dollar rallies at the beginning of US session on Tuesday.

Oil prices received strong boost from decision of the US administration to end temporary exemptions on buying Iranian oil.

Signal of stopping all imports from Iran further tightens oil market and boosts the price, which rallied 2.5% on Monday, after US decision has been announced, marking the second biggest one-day rally in 2019.

The price may ease further as traders book profits from Monday’s rally, with overbought daily studies adding to scenario.

However, strong bullish sentiment persists and oil prices would rally further after adjustment, as bulls eye Fibo projections at $66.56 and $67.24 (200% and 238.2% respectively) and Fibo 76.4% of $76.88/$42.36 ($68.73).

Corrective action should be ideally contained above former high at $64.77), but deeper dips towards rising 10SMA ($64.32) cannot be ruled out.

Saudi Arabia is ready and capable to cover shortage in oil market, caused by sanctions on Iran, but stronger output from OPEC members could increase pressure on oil prices. Releases of US Crude Stocks, late today and on Wednesday would also provide fresh signals.

Res: 66.17; 66.56; 67.24; 68.73
Sup: 65.57; 64.77; 64.32; 63.69

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