WTI re-takes $ 60.50 ahead of API?

• Headed to mid-2015 tops?
• Gains capped by USD recovery, rising output concerns.
• The US API crude stockpiles report eyed.

WTI (oil futures on NYMEX) extends its consolidative mode near mid-2015 highs into a second day today, as the bulls gather pace for the next move higher ahead of the US API crude inventory report due out later today.

WTI holds above $ 60 mark

The barrel of WTI found support just ahead of the $ 60 threshold and staged a minor bounce in a bid to regain 60.50 levels. However, further recovery looks capped amid rising US and Russian production levels.

Despite the stalled upside, the prices are still not far off the $60.74 mid-2015 highs reached yesterday, in the wake of the continuation of the Iranian unrest. Reuters reported that anti-government protesters demonstrated in Iran on Sunday in defiance of a warning by authorities of a crackdown.

Also, the resurgence of oil supplies into the markets due to the restart of the Forties pipeline and the resumption of production following a pipeline outage in Libya also weighs down on the sentiment around oil. At the time of writing, WTI rises +0.17% to $ 60.47 while Brent trades +0.20% higher near $ 66.70.

WTI Technical Levels

The resistances are aligned at $60.73 (2-1/2 year tops) ahead of $61 (psychological levels) and $61.82 (June 2015 tops). On the downside, supports are located at $60.29/28 (5-DMA/ daily low), $59.65 (10-DMA) and $58.50 (20-DMA).