The latest CFTC Positioning Report indicates a rise in net long positions on crude oil. This increase has allowed the net long positions to meet levels last seen in April and has come on the back of the unabated rally in crude oil prices.
Crude oil price on the Brent benchmark hit its highest levels in 2021 on Monday, after a 1.18% gain on the day. The high of 73.62 brings crude oil prices on the Brent benchmark to levels last seen in May 2019, as optimism on global economic recovery sweeps the financial markets. This has also boosted demand for the product, despite the gradual lifting of the OPEC + production curbs.
The ascent of crude oil price on the Brent benchmark has hit resistance at 73.34. However, this level is at risk as bullish pressure has led to an intraday violation. A clearance of this point allows the bulls to march towards 75.52, where the 22 April 2019 high is found.
On the flip side, a rejection at the present resistance may allow for a short-term correction, targeting 71.44 and 70.01 as the immediate downside targets. 67.74 and 66.81 are additional targets to the south if the corrective decline is extensive.
