Trading position (short-term; my opinion; levels for crude oil’s continuous futures contract): Those entering the market now can do so by holding long positions with entry at $63-63.5, with $59.7 as a stop-loss and $68.20 as the initial price target.

Oil prices are rising again, recovering from the last week’s losses caused by the Iran-US deal. The current price support at $66 for WTI is backed by optimism in the market about rising demand.

Oil Market: Key Updates

• The number of US domestic passengers hit a fresh post-Covid peak of nearly 1.9 million on Sunday (May 23), according to data from TSA.
• India and Japan Covid-19 cases are on a steady decline.
• EU updates its economic forecasts as vaccination campaigns take off with current estimates of GDP growth rate of 4.2%

The Iranian deal is in the final stages. Once announced officially, we may see some bearish action, but, for the most part, this week is expected to be bullish.

Note: Our trading positions remain the same.

Thank you.

Nishant Jain, MBA, CPSM
Oil Trading Strategist