Oil rises more than 8% and settles above $32.00/bbl

FXStreet (Córdoba) - Crude oil prices soared amid dollar's weakness, and in spite of a large increase in US stockpiles. WTI futures surged up to $32.45 a barrel, while Brent futures advanced above $35.00 on comments from Russia's Foreign Minister, expressing its willingness to meet with OPEC and non-OPEC members to discuss an output reduction, reigniting hopes of a deal to trim production.

Meanwhile, in the US, the EIA report showed that US crude stockpiles increased by 7.8 million barrels last week, against expectations of a 4.8 million gain.

WTI technical view

“The commodity is at its highest since Feb 1st, having rallied beyond the 38.2% retracement of its latest daily decline between 38.37 and 27.35 at 31.65, the immediate support. In the daily chart, the price recovered above its 20 SMA, while the technical indicators are heading north, albeit the RSI indicator is still below the 50 level”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has also advanced above a now bearish 20 SMA, while the technical indicators head higher, the Momentum still below 100 and the RSI around 57”.

“Despite dollar's weakness, investors are still reluctant to go long in the commodity, given that the background reasons of the latest slump remain firm in place”, Bednarik added.

Support levels: 31.65 31.00 30.40. Resistance levels: 32.35 32.95 33.60.