WTI extends rally despite rising US crude oil stocks, trades above $53.50


  • China is reportedly open to a partial trade with the United States (US).
  • Tension in the Middle East rises after Turkey launched a military operation into Syria.
  • Crude oil stocks in the US rose more than expected in the week ending October 4th.

Crude oil prices gained traction on Wednesday amid easing worries over the potential negative impact of a protracted US-China trade dispute on the energy demand outlook. 

Oil capitalizes on trade war headlines

Earlier in the day, citing an official with direct knowledge of talks, Bloomberg reported that China was open to making a partial trade deal with the US as long as President Trump does not impose any new tariffs on Chinese goods.

Meanwhile, heightened tensions in the Middle East after Turkish President Erdogan announced that they have launched a military operation into northeast Syria provided additional support to crude oil prices. After dropping below the $52 mark on Tuesday, the barrel of West Texas Intermediate posted decisive gains on Wednesday and was last seen trading at $53.65, adding 2.1% on the day.

On the other hand, the weekly data published by the US Energy Information Administration (EIA) on Wednesday revealed that crude oil stocks in the US increased by 2.9 million barrels in the week ending October 4th to surpass analysts' estimate for a build of 1.4 million barrels. Nevertheless, regardless of an initial negative reaction, crude oil prices largely ignored this data. 

Technical levels to watch for

WTI

Overview
Today last price 53.68
Today Daily Change 0.93
Today Daily Change % 1.76
Today daily open 52.75
 
Trends
Daily SMA20 55.97
Daily SMA50 55.54
Daily SMA100 56.07
Daily SMA200 57.13
 
Levels
Previous Daily High 53.43
Previous Daily Low 51.99
Previous Weekly High 56.59
Previous Weekly Low 51.19
Previous Monthly High 63.13
Previous Monthly Low 52.77
Daily Fibonacci 38.2% 52.54
Daily Fibonacci 61.8% 52.88
Daily Pivot Point S1 52.02
Daily Pivot Point S2 51.28
Daily Pivot Point S3 50.58
Daily Pivot Point R1 53.46
Daily Pivot Point R2 54.16
Daily Pivot Point R3 54.9

 

 

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