WTI jumps to the highest level since July 2015

After an initial slide to $51.00 neighborhood, WTI crude oil staged a goodish recovery and jumped beyond $52.00/barrel mark to a fresh yearly high. 

Currently trading around $52.10-15 band, with gains of nearly 1% for the day, the black gold's recovery gained traction during European session amid renewed risk-on wave as markets reversed initial bearish reaction over Italy's 'NO' vote to Prime Minister Matteo Renzi’s constitutional reforms proposal in a referendum on Sunday. 

Adding to the prevalent risk-on mood, a broad based greenback retracement is further supporting the bid tone surrounding dollar-denominated commodities - like oil. 

Meanwhile, the commodity continues to benefit from a new supply agreement by OPEC and was seen building on to last week’s sharp rally, hitting the level since July 14. 

Later during NA session, the US ISM non-manufacturing PMI might provide some impetus to the overall US Dollar Index, eventually driving dollar-denominated commodities and provide some short-term trading opportunities.

Technical levels to watch

A follow through buying interest above $52.20-25 area now seems to pave way for continuation of the commodity's near-term trajectory towards $53.00 handle ahead of its next major resistance near $53.40-50 region. On the downside, weakness back below $52.00 round figure mark, leading to a subsequent drop below $51.80 support, is likely to trigger a corrective slide even below $51.00 mark towards $50.60-55 support area.