- WTI moves higher and recovers part of Wednesday’s drop.
- EIA reported a nearly 8M barrel build during last week.
- OPEC will not revise higher the current output cuts.
Prices of the barrel of the American benchmark West Texas Intermediate are partially reversing Wednesday’s pullback and are trading around the $57.00 mark today.
WTI looks to trade, OPEC
The barrel of WTI lost further momentum on Wednesday after the EIA reported an almost 8M barrel build during last week, adding to Tuesday’s build reported by the American Petroleum Institute (API).
Sentiment among traders deteriorated further following news that the OPEC+ is not considering revising higher the current oil output cuts. The cartel, instead, said it will focus on increasing the compliance to the ongoing cuts. Adding to the downside, and back to the US-China trade front, the key gathering between President Trump and his Chinese peer Xi Jinping could be postponed for the next month amidst some re-assessment regarding the time and place of the event.
What to look for around WTI
Crude oil prices have reached the critical 200-day SMA in the low-$57.00s, although a break above this area on a sustainable fashion still remains elusive and maybe waiting for a stronger catalyst. The US-China trade developments stay as a source of permanent volatility, although the recent positive news have lent some extra legs to oil prices. On the negative side, another significant build in US crude oil supplies have dented the mood among traders in line with downbeat headlines from the upcoming OPEC+ meeting.
WTI significant levels
At the moment the barrel of WTI is gaining 0.91% at $56.86 and faces the next hurdle at $57.50 (monthly high Nov.5) followed by $60.00 (psychological handle) and then $60.94 (monthly high Jul.11). On the downside, a breakdown of $55.99 (100-day SMA) would expose $55.47 (55-day SMA) and finally $53.71 (low Oct.31).
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