FxWirePro: WTI crude oil erases early gains, Doji at highs dents upside
USOIL chart - Trading View
West Texas International Crude oil was trading largely unchanged at 66.21 at around 11:40 GMT.
Oil prices spiked higher in the early Asian session, extending previous session's gains, but were unable tp hold gains.
Price slipped lower from multi-month highs at 67.94 and Doji formation on the daily candle dents upside.
News suggesting Saudi Arabia’s hike in the official selling price (OSP) for its Arab Light crude to Asia by $1.40 per barrel buoyed prices.
Reports (on Wall Street Journal) suggesting Iran-backed Houthi military targeted Saudi Arabia’s oil port and facilities also favored the WTI upside.
Upbeat China trade data released on Sunday added extra boost to prices. China’s Trade Balance (USD terms) spiked 60% during January and February, to $103.25B, was another positive for oil prices.
However, oil prices faded initial gains and fell back as U.S. dollar gained strength across the board. For now, major trend still remains bullish and pullbacks are likely to be shallow.
21-EMA is major support and breach below will open downside. Retrace below 110-month EMA will plummet prices.