Crude setting up for a steady bullish recovery, WTI clawing back to $52.00

Despite struggles with volatility, crude markets are beginning to mark in a corrective lean this week.
Global oil production remains well above what demand can hope to absorb, but OPEC is expected to begin reigning in out-of-control production.

Joshua Gibson FXStreet

After a rough seven-week decline that saw oil prices shed 35% peak-to-trough, with WTI barrels skiding from 77.00 to the 50.00 zone, fueled by an unexpected walk-back on Iranian sanctions from the US, as well as continued signs of drastic overproduction across the planet's largest crude producers, including the US, Russia, and Saudi Arabia.

Oil prices have begun making a steady yet slow recovery, and WTI is now trading into 51.75, just shy of the 52.00 handle as investors find renewed confidence that OPEC is expected to begin drawing down their production levels following the oil cartel's meeting in early December, but upwards momentum remains constrained as US crude production levels remain near all-time highs, and doubts remain about OPEC's ability to snap the valves closed, especially with Saudi Arabia's oil production for November ticking into a record 11.3 million barrels per day.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 51.84
    Today Daily change: -20 pips
    Today Daily change %: -0.384%
    Today Daily Open: 52.04
Trends:
    Previous Daily SMA20: 56.63
    Previous Daily SMA50: 64.63
    Previous Daily SMA100: 66.75
    Previous Daily SMA200: 67.81
Levels:
    Previous Daily High: 52.13
    Previous Daily Low: 51.94
    Previous Weekly High: 57.42
    Previous Weekly Low: 50.13
    Previous Monthly High: 76.25
    Previous Monthly Low: 64.86
    Previous Daily Fibonacci 38.2%: 52.01
    Previous Daily Fibonacci 61.8%: 52.06
    Previous Daily Pivot Point S1: 51.94
    Previous Daily Pivot Point S2: 51.85
    Previous Daily Pivot Point S3: 51.75
    Previous Daily Pivot Point R1: 52.13
    Previous Daily Pivot Point R2: 52.23
    Previous Daily Pivot Point R3: 52.32

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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