WTI re-takes $ 61 as IEA ups 2018 global demand forecast

• Bulls look to extend the bounce above $ 61
• IEA upward revision to offset rising US supply?

WTI (oil futures on NYMEX) staged a comeback from a dip below the 61 handle, as the bulls received a boost from the latest IEA monthly oil outlook report, which showed that the agency raised the 2018 global oil demand forecast.

The IEA report offered the much-needed impetus to the black gold, which traded depressed so far this Thursday, in the wake of the bearish EIA US output and stockpiles data published late-Wednesday.

The EIA data revealed that the US U.S. crude output hit another record last week by rising to 10.38 million bpd while commercial crude inventories rose by 5 million barrels, at 430.93 million barrels.

However, the downside was short-lived as broad-based US dollar weakness amid the US tariffs induced global trade war fears and downbeat US retail sales report.  

Focus now remains on the US regional manufacturing numbers due later on Thursday for fresh momentum on the USD-sensitive oil.

WTI Technicals

At $ 61.05, the resistances are aligned at $ 61.24/47 (5 & 10-DMA), $ 61.93 (20-DMA) and $ 62.50 (psychological levels). On the flipside, the supports are located at $ 60.78 (daily pivot), $ 60.50 (key support) and $ 59.34 (classic S2/ Fib S3).