- WTI is down smalls around the $58.00 mark.
- Traders’ attention remains on US-China trade.
- EIA reported another unexpected build in US oil supplies.
Prices of the barrel of the WTI are trading on the defensive for another session on Thursday, returning to the $58.00 neighbourhood after climbing to fresh 2-month tops near $58.70 earlier in the week.
WTI focused on trade, OPEC
Prices of the barrel of West Texas Intermediate are down for the second day in a row and approaching the critical support area in the mid-$57.00s, where is located the key 200-day SMA.
After climbing to new 2-month tops in the $58.60 region earlier in the week, oil prices met some renewed selling bias against the backdrop of inconclusive rumours always surrounding the US-China trade deal (or no-deal). In addition, both the API and the EIA reported larger-than-expected US crude oil builds during last week, also hurting the sentiment somewhat.
Supporting crude oil prices, however, emerged new speculations that the OPEC+ could extend the ongoing output cut agreement further into 2020, although nothing has been confirmed as of late.
On Friday, driller Baker Hughes will report on the weekly US drilling activity.
What to look for around WTI
The US-China trade developments remain the almost exclusive driver of crude oil prices for the time being along with the decision by the OPEC+ on whether to extend the current agreement that limits the oil production. Concerns around crude oil prices also find extra grip on the persistent build in US oil supplies and higher oil production.
WTI significant levels
At the moment the barrel of WTI is losing 0.34% at $57.87 and a breakdown of $57.47 (200-day SMA) would open the door to $55.88 (100-day SMA) and then $54.85 (monthly low Nov.20). On the upside, the next hurdle is located at $58.65 (monthly high Nov.22) seconded by $60.00 (psychological mark) and finally $60.86 (monthly high Jul.15).
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