WTI settles above $53
Crude oil prices recorded strong gains on Monday and refreshed its monthly top with the barrel of West Texas Intermediate settling at $53.14 recording a 1.72% gain on the day.
News of an another shutdown at Libya's largest oilfield over the weekend suggested that the supply output is going suffer further and supported the prices as the trading week went under way. Besides, geopolitical tensions in Syria remain high, raising concerns over a potential negative impact on neighboring producers such as Iran, Iraq and Saudi Arabia.
- Libya’s biggest oil field Sharara said to halt production - BBG
Crude oil prices were further supported by the statements from Kuwait Oil Minister Essam Al-Marzouq who forecasted the global crude stocks to continue to drop in coming months.
- New York Fed: Oil prices rose again owing to increasing demand and decreasing supply
Technical outlook
The barrel of WTI is facing the first technical resistance at $53.80 (high Mar.6) before $54.44 (Mar. 1 high) and $55 (psychological level). On the downside, supports could be found at $52.30 (daily low), $51.50 (Apr.7 low) and $51 (psychological level).
- Oil: Markets are balancing in alignment with fundamentals - Natixis