- Crude oil holds to daily gains, off highs.
- US-China agreement offered support to WTI that heads for the highest close since mid-October.
Crude oil prices peaked following the agreement between the US and China regarding trade by signing the Phase One Trade Agreement. The barrel of West Texas Intermediate jumped to $60.45, the highest level since September 17 and then pulled back. As of writing trades at $59.95, up 1.20% for the day, about to post highest weekly close since July.
Prices extended the rally after confirmation of a deal between the US and China. But the optimism faded amid lack of details surrounding the agreement and prices pulled back. Still, the trend points to the upside. Also, the improvement in risk appetite following the results of the UK elections offered support. At 18:00 GMT the Baker Hughes US Oil Rig Count report will be released.
From a technical perspective, while above $59.30 the bullish bias remains intact. The next strong resistance area might be seen at $60.50 and $61.00 (July highs). The momentum is still there, particularly if it holds above $60.00.
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