- WTI prices have consolidated ahead of the G20 this weekend.
- Bulls will also look to the 63.79 swing highs while bears will look to the 61.8% Fibo retracement.
WTI is currently trading at $59.21, -0.03% on the day having travelled between $58.63 and $59.79 as we await headlines from an expected meeting between President Putin and Crown Prince MBS this week at the G20, as well as from summit between Trump and China’s Xi.
While the Xi and Trump meeting is of key importance, the meeting between President Putin and Crown Prince MBS comes ahead of the OPEC meeting where members recognize that supply risks remain plentiful with downside demand risks plentiful considering the Iran factor, as well as the Libyan conflict and deteriorating Venezuelan production.
“We continue to expect that crude prices will average $58/bbl WTI and $69/bbl Brent, but note that the cartel may also recognize further risks to global demand, as the US-China trade war could still create a negative shock, which provides some additional optionality to the upside as Saudi Arabia may continue to see “stealth cuts” as necessary, keeping their compliance to the agreement significantly north of 100%.,” analysts at TD Securities argued.
WTI levels
WTI is above the 200-Experiential Moving Average still and has eyes for the $60 psychological figure which correlates with trend line resistance. Bulls will also look to the 63.79 swing highs. However, on a break the weekly lows at 56.77, eyes will turn to the 200 weekly EMA (last week’s low) and the 61.8% Fibo around the 52 handle. There would then be prospects for a correction to back towards the14th Jan 50.41 low and then the 26th November lows at 49.44.
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