Crude Oil rebounds on Monday, WTI climbs back over $71

• Crude Oil markets recovered lost ground on Monday, rising 0.8%.
• WTI bounced back above $71.00 per barrel but still remains soft.
• US drilling activity remains low, but demand remains soft.

West Texas Intermediate (WTI) US Crude Oil prices rebounded on Monday despite an overall lack of news during the US session. US markets were largely dark in celebration of President's Day, keeping trade volumes in check.

Trade sanctions are keeping some shipping vessels moored offshore in Russia, crimping energy flows in the Asiatic regions. Global Crude Oil demand is also consistently underperforming forecasts, sparking some pumping agencies to slow up their production metrics. Despite turning the spigots lower, US production continues to outrun refiners' ability to sop up production, which hit its tenth-highest ever week-on-week output capacity according to the Energy Information Administration (EIA).

The latest week-on-week Crude Oil supplies figures for the US are due from the EIA as well as the American Petroleum Institute (API). Both figures are slated for release on Wednesday.

WTI price forecast

Crude Oil prices caught a bid on Monday, but barrel prices continue to run on the low side of the 50-day Exponential Moving Average (EMA) near $72.25. A near-term decline in energies price action appears to have abated after knocking WTI off its latest swing high above $79.00, dragging bids back below the 200-day EMA near $73.90 in the process. A technical floor is priced in just above the $70.00 major price handle, keeping prices caught in a tight technical range.

WTI daily chart