Oil Price Forecast: WTI recovery reaches levels beyond $18.00 per barrel

• WTI rebound from negative prices extends beyond $18.00.
• Oil prices increase on rising tensions in the Middle East and output cuts.

WTI Daily Chart

Oil prices are picking up on Thursday, supported by increasing tensions in the Middle East and the production the main producer countries. WTI contracts have risen to prices right above $18 after having plummeted into negative territory earlier this week.

US President Trump’s threat to attack any Iranian vessel in the Gulf and the output cuts adopted by some major producers, like Kuwait, seem to be given some respite to ailing crude prices.

WTI Four-Hour Chart

WTI has been going through a mild but steady recovery over the latest sessions, showing a correction to the collapse experienced last week although it is still unclear how far could it reach. If prices consolidate at the current levels, the next resistance level might be at $18.85 before $20.60 and  $21.40. On the downside, immediate support lies at $16.25 previous resistance and below here, $13.40 and $10.12.