WTI moves back closer to multi-week tops, holds comfortably above $64.00 mark
- WTI crude oil gained traction for the fourth consecutive session on Thursday.
- The fundamental backdrop warrants some caution before placing bullish bets.
- Investors now look forward to the Advance US Q1 GDP print for a fresh impetus.
WTI crude oil climbed back above the $64.00 mark during the early European session and inched back closer to multi-week tops touched on Wednesday.
The commodity built on this week's goodish rebound from the $60.60 area and gained traction for the third consecutive session on Thursday. This also marked the fifth day of a positive move in the previous six and was supported by expectations for a recovery in fuel demand, bolstered by the vaccine rollouts in Europe.
That said, the fundamental backdrop should keep a lid on spot prices and warrants some caution before placing aggressive bullish bets. The continuous surge in new COVID-19 cases in India, Japan and Brazil could force governments to impose tighter lockdown restrictions. This, in turn, could hit the crude oil demand.
Apart from this, the recent OPEC+ decision for a gradual easing of oil production restrictions from May to July could further act as a headwind for the black gold. Hence, it will be prudent to wait for some follow-through strength beyond the overnight swing highs, around the $64.45 region before positioning for any further gains.
Market participants now look forward to the US economic docket, highlighting the release of the Advance Q1 GDP report. Growth in the world's largest economy is expected to have accelerated by a 6.5% annualized pace during the January-March period. A stronger reading might be enough to provide a fresh lift to the commodity.
Technical levels to watch