- Prices of the WTI ease from 2-month tops near $57.50.
- EIA weekly report coming up later in the day.
- Trders’ attention remain on US-China trade headlines.
Prices of the barrel of the American benchmark for the sweet light crude oil are showing some loss of momentum on Wednesday, although they manage well to stay in the upper end of the recent range.
WTI bolstered by trade optimism, looks to EIA
WTI met strong resistance in the $57.00 neighbourhood so far today following three consecutive daily advances and coming back after last week’s lows in sub-$54.00 levels. The key 200-day SMA in the $57.20 region emerges as a natural hurdle ahead of a potential move to the psychological $60.00 mark.
The rally in crude oil has been sustained by the rising optimism on the US-China trade front, particularly after both countries agreed on a partial “Phase One’ deal and after recent news slipped the possibility that the US could remove some of the existing tariffs on Chinese products.
Furthermore, speculations on probable extra output cuts by the OPEC remain on the rise and have been also collaborating with the upbeat mood surrounding crude oil.
Later in the day, the DoE will publish its official weekly report on US crude oil inventories. Late on Tuesday, the API reported a nearly 4.3M barrel build during last week, reversing the previous drop.
WTI significant levels
At the moment the barrel of West Texas Intermediate is retreating 0.42% at $56.99 and a breach of $55.97 (100-day SMA) would expose $55.46 (55-day SMA) and finally $53.71 (low Oct.31). On the upside, the next hurdle is located at $57.50 (monthly high Nov.5) followed by $60.00 (psychological handle) and then $60.94 (monthly high Jul.11).
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