WTI jumps to weekly tops above $ 51 on stronger Chinese demand

WTI (US oil futures on NYMEX) reversed a temporary dip seen yesterday and resumed its upbeat momentum to clock fresh one-week highs at $ 51.53 levels.

The renewed optimism around the black gold was sparked by strengthening demand for oil seen from the world’s largest oil consumer, China. The latest data released by the China Customs showed that the Chinese January-September crude oil imports grew 12.2% at 318 million tonnes.

Over the last hour, the buying interest around oil picked up pace, following the reports of the Iraqi army launching operation to retake Kirkuk province from Kurdistan. Meanwhile, markets await the decision due late today by the US President Trump on whether to continue to certify the 2015 Iran nuclear deal.

Also, of note will the US rigs count data and CPI figures slated for release in the NA session. At the time of writing, WTI rallies +1.54% to $ 51.38, while Brent rockets +1.67% to $ 57.20.

WTI Technical Levels

Higher-side levels: 51.53 (1-week highs), 52 (round number), 52.43 (Sept 26 high)

Lower-side levels: 50.78 (5-DMA),) 50.50 (psychological levels), 50.06 (Fib R2)