Oil climbs back above $45.00 level

WTI crude oil prices got a boost on Thursday from a raging wildfire in Alberta, lifting the commodity back above $45.00 handle.

of late, the black gold had been witnessing some selling pressure on renewed fears of oversupply. The fear got accentuated on Wednesday after the EIA report showed a larger-than-expected rise in crude oil inventories. For the week ended April 29. During the week, crude oil stockpiles rose by 2.8 million barrels against an expected rise of 0.6 million barrels.

Crude oil prices however, recovered from Wednesday's low of $43.20 and extended its recovery on Thursday to move back above $45.00/barrel mark on news of the Canadian wildfires. The commodity has now moved back above an important resistance near $44.30-40 area, marking 61.8% Fibonacci expansion level of $27.73-$42.46 upswing and subsequent retracement. A strong follow-through buying interest would continue supporting further near-term up-move for the commodity.

Technical levels to watch

A sustained trade above $45.00 mark, would mark resumption of the commodity’s previous up-trend, and the commodity might make a fresh attempt to move back towards April daily closing high level resistance near $45.95-$46.00 round figure mark.

On the downside, $44.00 round figure mark now seems to have emerged as immediate support. Weakness back below this handle would confirm that crude oil prices have formed a near-term top near $46.75, thus making it vulnerable to near-term corrective move towards $42.50-40 strong support area.