US Oil Kisses the $70 Level, As It Remains Supported by OPEC and Technical Indicators
US Oil touched $70 last night, with OPEC helping keep it bullish
Crude Oil has turned quite bullish once again in the last two months, after the retreat in March, which took the price below $60. The improving global economy which has picked up considerable pace and will do so further in summer, as life returns back to normal.
As a result, US WTI crude Oil has been bullish, particularly since late May. The 20 SMA (gray) has been providing solid support on the H4 chart, showing that the pace of the uptrend is quite strong, since the 20 SMA is the smallest one, while the larger ones which are slower are not even catching up.
OPEC+ is helping to keep Oil bullish, with the OPEC Secretary General Barkindo sounding upbeat in comments that crossed the wires a while ago. He said inventories will continued to fall in the coming months after declining by 6.9 million barrels in April.
That’s down 160m barrels from this time a year ago. “We expect to see further drawdowns in the months ahead,” he said while noting that compliance with cuts was 114% in April. So, crude Oil remains bullish after just touching $70 and the latest retreat might be a good opportunity to buy US Oil at the 20 SMA. Although, we will see how the price reacts down there before making a move.
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