- WTI trades around $57.30 during early Monday.
- Optimism for the US-China trade deal pleased energy buyers.
- $58.20 seem nearby resistance with $56.70 acting as immediate support.
WTI trades near $57.30 at the start of Asian trading on Monday. The crude oil benchmark marked second consecutive weekly gain as optimism surrounding the US-China trade deal favored increasing future demand. Adding to the sentiment was Friday’s weekly Baker Hughes oil rig count data that mentioned the US operating rigs declined for the first time in three weeks.
During last week, the US and China again faced each other on the trade table. This time it was in Washington with the delegates headed by the Chinese Vice Premier Liu He being guests.
The two sides to trade remained progressive on talks with the US President Donald Trump communicating a very good chance of a deal over the weekend. However, not many details of the progress have been given off-late.
With the likely trade deal, expected improvements in China’s economic data that has been struggling recently helped commodity basket including crude.
On the other hand, weekly data concerning the US drilling rig count reported by Baker Hughes added optimism among the energy traders. The data reported a decline of 4 units to 1,047 rigs working for the week ended Feb. 22 with the number of oil rigs operating declining for the first time in three weeks’ time.
While expected trade-deal between the world’s two largest economy is likely to reimburse prior losses due to the trade protectionism, improvement at demand-supply can help direct the prices upwards.
WTI Technical Analysis
In spite of trading to the highest since November 2018, the prices need to surpass $58.20 resistance in order to aim for $59.00.
On the downside, $56.70 and $55.80 are likely nearby supports to watch during the pullback.
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