- WTI is looking to stabilise following Trump’s OPEC Tweet on Monday where prices dropped in the biggest one-day dollar and percentage decline year to date.
- WTI is currently trading at 55.46, between the day’s range of between 55.05 and 55.96.
After marking its lowest settlement in more than a week on Monday, WTI has been making tracks to the upside again, with bulls taking Trump’s OPEC Tweet as a one-off glitch in their quest for territory towards $60bbls in WTI.
“Given the cartel did not bend the knee to Trump in December despite his urges to not reduce production, and as we have previously argued that the Kingdom is firmly targeting higher prices, despite its likely loss of market share, this suggests that its oil policy is currently independent of political motives and crude should recover from the tweet related weakness,”
analysts at TD Securities argued.
Earlier in the day, the global benchmark April Brent added 43 cents, or 0.7%, to $65.19bbls on ICE Futures Europe, although, a long way behind yesterday’s $2.36, or 3.5% sell-off.
However, optimism over trade talk progress between the US and China, as well as OPEC’s effort to prop up prices, combined with Venezuela politics, are keeping the bulls in the game despite the US record output which is a thorn in the bull’s side.
WTI levels
While there has been a slight correction in prices, so far, there are still warning signals on in the technical picture as the price teases around the daily pivot point at 56.13. For one, the Ichimoku cloud’s trending lagging span is catching up with price. Stochastics have just started to turn back from overbought readings, indicating that the bull trend is still in jeopardy in the near term. Bears can target the Ichimoku cloud top and ascending trendline support first, which comes in at around 54.50 guarding the cloud top in the low areas of the 53 handle. On the flipside, bulls can target 57.50 and then a break of the swing highs 57.89 leaves the trajectory en route for the 60.00 objective.
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