- WTI met tough resistance at the $54.00 mark.
- OPEC+ output cut deal sustains the upside.
- Weekly report by API next on the docket.
Prices of the WTI are fading the negative start of the week, although the optimism lost vigour at the $54.00 mark.
WTI now looks to API
Prices of the barrel of the American benchmark for the sweet light crude oil remain well supported by prospects of an extension of the current OPEC+ agreement to curb oil output.
Also bolstering traders’ sentiment appear the upbeat mood in the risk-associated complex after the recently clinched deal between the US and Mexico. However, the more relevant US-China trade dispute remains unsolved and this is expected to keep weighing on prices for the time being.
Later in the day, the American Petroleum Institute will publish its weekly report on US crude oil inventories.
What to look for around WTI
Prices of the barrel of the West Texas Intermediate have now shifted their focus of attention to the more macro context: trade tensions, prospects of weaker oil demand in response to the projected global slowdown. This view has relegated – albeit temporarily – positive drivers coming in from the supply side, including the tight US market, the so-called ‘Saudi put’ and geopolitics.
WTI significant levels
At the moment the barrel of WTI is gaining 0.30% at $53.53 and a breakout of $54.76 (high Jun.10) would aim for $58.46 (100-day SMA) and finally $59.41 (200-day SMA). On the flip side, immediate contention emerges at $50.54 (monthly low Jun.5) seconded by $47.39 (78.6% Fibo of the December-April rally) and finally $44.23 (2019 low Jan.2).
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