- Prices of WTI cling to gains above the $63.00 mark.
- Trade, geopolitics keeps weighing on prices.
- US oil rig count next on tap in the docket.
Prices of the barrel of WTI are clinging to the positive territory at the end of the week, managing to retake the $63.00 mark although losing some shine near $63.60.
WTI focused on geopolitics, trade, Jeddah
Crude oil prices gained more than $3 since Monday’s lows in the proximity of the psychological $60.00 mark per barrel – where sits the 200-day SMA – on the back of rising trade tension between the US and China and the geopolitical factor including Saudi Arabia, Iran and the US.
Further out, traders’ attention has now shifted to the upcoming meeting of the OPEC+ in Jeddah (weekend), where members of the cartel and other producers will discuss on the potential supply disruptions as a direct consequence of US sanctions against Iranian oil exports.
Later in the NA session, driller Baker Hughes will publish its weekly report on US oil rig count.
What to look for around WTI
Prices of the WTI appear to have met some decent resistance in the $63.60 region this week ahead of the key OPEC+ meeting in Jeddah in the next days. The resurgence of US-China trade concerns and rising geopolitical tensions in the Persian Gulf have been sustaining the moderate rebound in prices, while the broader positive outlook on crude oil stays underpinned by speculative positioning, the so-called ‘Saudi put’, the ongoing OPEC+ deal to curb oil output and US sanctions.
WTI significant levels
At the moment the barrel of WTI is gaining 0.12% at $63.18 and a break above $63.61 (high May 17) would open the door for $63.74 (61.8% Fibo of the October-December drop) and then $64.66 (high Apr.30). On the downside, the immediate support emerges at $60.36 (200-day SMA) followed by $59.98 (low May 6) and finally $59.63 (50% Fibo of the October-December drop).
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