USOIL chart - Trading View
WTI erases early losses and edges higher from session lows at 59.55 to trade at 60.45 at around 10:20 GMT.
Oil prices remain supported amid supply outage from Texas on account of freezing temperature. U.S. dollar strength is however going to cap upside.
Oil production from Texas’s Permian Basin drop 65%, nearly 3.5 million barrels a day, according to Bloomberg reports.
Also favoring gains could be Russia’s export curbs and Libya’s production declines, as well as Saudi Arabia’s voluntary reduction in output.
Looking forward, focus shall be on the weekly US oil stockpile data from the American Petroleum Institute (API) for immediate direction.
Technical bias is bullish. Pullbacks are likely to be shallow. Long lower wicks on daily candles suggests buying interest at lows.
Price action has edged above crucial 110 month EMA resistance. Gains till 69.52 (200 month MA) look likely.
