- Crude oil prices move higher on trade hopes.
- WTI retakes the $53.00 handle and beyond.
- API report on US oil inventories next on tap.
Prices of the barrel of the West Texas Intermediate are trading on a positive note so far on Tuesday, retaking the key $53.00 mark and printing at the same time fresh 3-day highs.
WTI upbeat on trade hopes, looks to data
The now better sentiment in the riskier assets is propping up the recovery in crude oil prices to levels beyond the key $53.00 mark, or 3-day highs, always on the back of renewed hopes
In fact, renewed speculations on a positive outcome from this week’s US-China trade talks have been lending support to crude oil prices, while recent news cited the likeliness that the 90-day truce deadline (March 1) could be extended further.
Moving forward, the American Petroleum Institute (API) will report on the week variation of US crude oil supplies later in the NA session.
What to look for around WTI
Hopes of a US-China trade deal have lent extra oxygen to crude oil prices in past hours and this should remain a key driver in the very near term. On the broader picture, the current OPEC+ deal to curb oil production, US sanctions against Venezuelan and Iranian oil exports and the so-called ‘Saudi Put’ keep offering strong contention in case of occasional drop in prices.
WTI significant levels
At the moment the barrel of WTI is up 1.78% at $53.30 facing the next hurdle at $53.58 (10-day SMA) followed by $55.59 (2019 high Feb.4) and finally $57.74 (100-day SMA). On the downside, a breakdown of $51.17 (low Feb.11) would aim for $51.83 (55-day SMA) and then $50.34 (low Jan.14).
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