- WTI inches higher and retakes the $53.00 mark per barrel.
- Traders look to US-China trade talks, which will resume today.
- The API reported a 2.098M barrels build during last week.
Prices of the barrel of the West Texas Intermediate are advancing further north of the $53.00 mark on Wednesday ahead of US-China trade talks and the EIA weekly report.
WTI up on Venezuela, looks to trade
WTI is advancing for the second session in a row today, bolstered by a potential announcement of further US sanctions on Venezuelan oil.
In addition, hopes of further progress in the US-China trade talks remain high and keep underpinning the up move in prices, as both parties are set to resume negotiations later today in Washington.
Later in the day, the EIA will publish its report on US inventories, while the API reported late on Tuesday a nearly 2.1M barrels build during last week.
What to look for around WTI
Crude oil prices are extending the multi-day sideline theme today. In the broader scenario, the OPEC+ agreement to curb oil output appears supportive of higher prices, in collaboration with supply concerns stemming from Libya and sanctions against Venezuela and Iran. However, extra gains in crude oil prices appear somewhat eclipsed by the probability of a global slowdown, uncertainty around the US-China trade war and omnipresent concerns over a supply glut led by increasing US oil production. Noteworthy, the Baltic Dry index – which gauges the costs of shipping raw materials – has retreated around 48% since last summer, somewhat reinforcing the idea of a global slowdown and putting crude oil on extra downside pressure.
WTI significant levels
At the moment the barrel of WTI is advancing 0.74% at $53.45 facing the next ip barrier at $54.22 (2019 high Jan.21) seconded by $54.48 (monthly high Dec.4) and finally $58.00 (high Nov.18 2018). On the other hand, a break below $52.92 (10-day SMA) would aim for $51.40 (21-day SMA) and then $51.13 (low Jan.28).
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