WTI crude oil broke out of its intraday consolidative trading range and shot to over one-week tops, around the $63.55-60 region during the mid-European session. The black gold attracted some dip-buying on Wednesday and turned positive for the second consecutive session, bulls now looking to build on this week's solid bounce from the $61.60 area. That said, the fundamental backdrop should keep a lid on any runaway rally for the commodity.
On Tuesday, the OPEC+ agreed to increase the global crude oil supply from May. This comes amid worries that surging COVID-19 cases in India, Japan and Brazil will drive down fuel demand, which should hold bulls from placing aggressive bets and act as a headwind for crude oil prices. From a technical perspective, any subsequent positive move is likely to confront resistance near the $64.00/barrel mark ahead of monthly swing highs, around the $64.30-35 region. A sustained move beyond will be seen as a fresh trigger for bulls and pave the way for additional gains.