WTI riding the US stock market gains on dwindling trade war concerns, $65bbl next?
|- WTI rising the positive turnaround in risk sentiment, eyes on the 65 handle?
- WTI meeting supply and price capped by recent US rig counts.
WTI is up strongly on Monday so far as investor's risk appetite returns to start the week with Wall street rallying on the back of comments from President Donald Trump and his administration that helped to calm ongoing and heightened concerns about the rise in trade hostilities between China and the US.
The rally from 61.95 to current highs of 63.58 follows a previous decline of 2% from Friday's trade, making for a 4% drop for the week, being the worst weekly performance in two months where prices were tracking the equity markets.
Rig activity a blockade for the bulls
Recent rig activity in the U.S. has also pointed to production growth - (according to Baker Hughes, the number of rigs drilling for oil in the US was up by 11 last week, a further sign of relentless U.S. crude output - bearish). However, markets are focussed on the trade wars right now and there are signs that the Trump’s administration could be softening its stance in the trade spat with China.
Oil levels
WTI is stalling with technical indicators turning on the hourly charts while the price falls below the descending 200-hr SMA at 63.83. on the flip side, 63 the figure comes as first support and 62.40 thereafter. Only a break above the descending resistance on the 4-hr sticks where the 100 and 50 smas cross, correlating with the 200-hr SMA would open risk to 65 handle territories.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.