WTIUSD

Crude oil prices have risen with a strong demand signal following a much larger than expected decline in US crude oil stocks (-5.836M). This situation allows prices to trade above the pivot level of 66.085. The ceasefire agreement has a dual effect on oil: on one hand, it can suppress prices by reducing the geopolitical risk premium, while on the other hand, it has the potential to increase global economic activity and thus oil demand. For now, the market is pricing in the strong stock data and targeting the resistance level of 67.557. Tomorrow's US GDP data will provide clues about global growth and will influence the direction of oil.