WTI crude oil prices extended their 5-day winning streak and rose above $21.40, up 4.80% on a day mainly as most US states and nations in Europe and Asia showed a willingness to ease coronavirus lockdown measures. As a result, expectationa increased that fuel demand will start to pick up.

The expectations of receding inventory build also keep oil prices higher. Moreover, the broad-based US dollar weakness also adds strength to the buying in oil prices. As of writing, WTI crude oil prices are currently trading at 22.25 and consolidating in the range between 21.12 and 22.77.

Governments started to easing the coronavirus-induced lockdowns, and traders started thinking that the most dangerous situation might be finished and things are back on the way to recovery which eventually raises expectations for better fuel demand. The permission of getting back to work and opening up construction sites, parks, and libraries by some US states and several countries, including Italy, Spain, Portugal, India, and Thailand also support the oil prices. On the other hand, the latest report about the slowdown in inventories at Cushing since mid-March continues to support crude oil prices.

Daily Support and Resistance

S1 16.08

S2 18.28

S3 19.55

Pivot Point 20.48

R1 21.75

R2 22.69

R3 24.89

Crude oil has made a strong bullish recovery, as it has violated the resistance level of 21.82 level. Above 21.82, we may see oil prices soaring further higher until 25.02 level. For now support holds around 21.85, but the bullish bias remains strong as the RSI is also heading north, and may also lead oil prices on the upper side.

Good luck!