- WTI keeps the bid tone and fades part of yesterday’s retracement.
- Crude oil prices surged on optimism on the US-China trade front.
- OPEC will not revise higher the current output cuts.
Prices of the barrel of the WTI are extending the upbeat momentum and are now trading beyond the key $57.00 mark, flirting at the same time with the critical 200-day SMA.
WTI bid on trade headlines
The barrel of the American reference for the sweet light crude oil keeps the firm noted today following rising optimism on an eventual trade agreement between the US and China. Indeed, news said that officials from both parties are assessing plans to gradually remove tariffs, all under the recently announced 'Phase One' deal.
The upbeat mood in the risk-associated universe and crude oil resurged following the news and helped to offset the recent downside pressure following another build in US crude oil supplies - as per the API and EIA reports - and speculations that the OPEC+ could not revise higher the ongoing output cuts at its meeting next month.
What to look for around WTI
Crude oil prices have reached the critical 200-day SMA in the low-$57.00s, although a break above this area on a sustainable fashion still remains elusive and maybe waiting for a stronger catalyst. The US-China trade developments stay as a source of permanent volatility, although the recent positive news have lent some extra legs to oil prices. On the negative side, another significant build in US crude oil supplies have dented the mood among traders in line with downbeat headlines from the upcoming OPEC+ meeting.
WTI significant levels
At the moment the barrel of WTI is gaining 1.85% at $57.38 and faces the next hurdle at $57.85 (monthly high Nov.6) followed by $60.00 (psychological handle) and then $60.94 (monthly high Jul.11). On the downside, a breakdown of $55.99 (100-day SMA) would expose $55.47 (55-day SMA) and finally $53.71 (low Oct.31).
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