As we have mentioned many times previously, oil is one of the best inflation hedges, and the commodity continues to perform pretty well.
It was another 1% higher on Monday, trading above 71 USD, the levels last seen in October 2018.
From the medium-term perspective, as long as oil trades above previous highs in the 66.60 – 67.60 USD region, the outlook remains bullish. The long-term trend also seems bullish.
From the intraday perspective, the most important support is at 70 USD, and dips to this level are expected to be bought. The 8-day EMA is also slightly below this level.
Alternatively, the short-term resistance could be at 72 USD, followed by the second target for bulls at 75 USD.
The CPI inflation jumped above 5% recently, which should be very positive for oil until the rise in consumer prices starts to slow down (probably not anytime soon).