Crude oil seems ready to move higher

Crude oil after five weeks of consolidation around $56-62/barrel, looks ready to push ahead higher once again today.

• Fundamentally speaking supply glut still remains a concern. According to latest data, Saudi Arabia, world's largest crude exporter increased output further in May. Production rose to 10.33 million barrels/day from 10.31 million barrels/day.

Though the market remains oversupplied compared to demand, price as of now looking beyond supply fundamentals. Weak dollar is providing support to prices.

Today's focus is on EIA report on Crude oil inventory in US. Inventory in US has shrank four consecutive month. Today EIA will publish report at 14:30 GMT. After last week's 1.8 million barrels shrink in inventory market is expecting another shrinkage of 1.7 million barrels.

American petroleum institute's (API) report showed a drawdown of 6.7 million barrels, largest drawdown since May 2014.

WTI if successful to break the resistance around $63 area, it is likely to move higher towards $65/barrel as first target, $70/barrel as next and $75/barrel as final target. Stop loss for the trade is around $56/barrel.

However, a failure to break would push prices towards $50/barrel.

WTI is currently trading at $61.5/barrel, continuing its third consecutive daily gains. Brent is at $4.5/barrel premium to WTI.