Technical Analysis:
Currently trading around 78.42, price is consolidating in a range and also we are expecting a retracement to the upside. US CRUDE OIL is at a good support right now and we might start seeing an upside move from here in it towards $81 levels or further to the upside if we shift market structure.
Fundamentals:
WTI crude futures steadied above $78 per barrel on Monday as the prospect of extended output cuts from OPEC+ provided some support to oil prices.
The group of major oil producers said last week that they could extend voluntary output cuts of 2.2 million barrels per day beyond June if demand fails to rebound, although they have yet to start formal discussions on the matter.
On the demand side, weaker-than-expected US jobs data revived hopes for Federal Reserve interest rate cuts this year, boosting the demand outlook.
Meanwhile, WTI prices tumbled nearly 7% last week as easing risks of supply disruptions in the Middle East and surging US crude inventories weighed on the market.
Israel and Hamas continued to hold ceasefire talks in Cairo, with US Secretary of State Antony Blinken saying “taking the ceasefire should be a no-brainer” for Hamas.
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