Oil at new cycle highs

01/06/2021

The WTI oil was up 2.5% on Tuesday, rising above 68 USD, which are levels last seen in October 2018.

As long as oil remains above previous highs of 68 USD, the short-term outlook seems bullish. 

Bulls will be targeting the psychological level of 70 USD, and it is very likely the target will be reached this week. If the support at 68 USD does not hold, another demand zone could be observed at around 66.80 USD.

Sentiment remains positive as inflation is on the rampage. Thus, dips should be bought, and the long-term uptrend is expected to stay intact. 

Additionally, the US dollar continues to decline every day, strongly supporting commodities, and oil is taking advantage of it. 
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