WTI looks to snap seven-day losing streak, trades around $58.30 ahead of API

Tuesday's data showed China's oil imports rose 9.5% in 2019.
Iraq's compliance with output cuts reportedly improved in December.
Coming up: API's weekly crude oil inventory report.

Eren Sengezer FXStreet

The de-escalation of the US-Iran conflict last week and heightened hopes of a ceasefire in Libya weighed on crude oil prices and forced the barrel of West Texas Intermediate to close the last seven trading days in the negative territory and erasing nearly 8% during that time period.

After touching its lowest level in more than a month at $57.70, however, the WTI staged a modest rebound on Tuesday and was last seen trading at $58.35, adding 0.5% on the day.

Supply-side dynamics help crude oil rebound

The upbeat market mood ahead of the signing of the US-China trade deal on Wednesday helped crude oil prices gain traction on Tuesday. Additionally, the latest trade data published by China’s General Administration of Customs showed that oil imports in 2019 increased by nearly 10%.

Meanwhile, Russian news agency TASS reported that the OPEC+ could extend its output cuts until June if March meeting is postponed to support crude oil's recovery. Earlier this week, Saudi Arabia's energy minister Prince Abdulaziz bin Salman noted that Iraq's compliance with the output cut agreement improved in December and added that the country was expected to have full compliance in January.

Later in the day, the American Petroleum Institue will release its weekly crude oil stock report.

Technical levels to watch for

WTI

Overview
Today last price	58.38
Today Daily Change	0.29
Today Daily Change %	0.50
Today daily open	58.09

Trends
Daily SMA20	60.91
Daily SMA50	58.88
Daily SMA100	57.13
Daily SMA200	57.85

Levels
Previous Daily High	59.28
Previous Daily Low	57.93
Previous Weekly High	65.67
Previous Weekly Low	58.69
Previous Monthly High	62.38
Previous Monthly Low	55.41
Daily Fibonacci 38.2%	58.45
Daily Fibonacci 61.8%	58.76
Daily Pivot Point S1	57.59
Daily Pivot Point S2	57.08
Daily Pivot Point S3	56.24
Daily Pivot Point R1	58.94
Daily Pivot Point R2	59.78
Daily Pivot Point R3	60.29

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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