WTI: Bulls regain poise, back above $ 56 amid trade optimism, OPEC cuts

• Underpinned by US-China trade deal hopes, OPEC cuts and Venezuelan sanctions.
• Bulls target 57 handle, but USD rebound – a bit of a worry?

The recovery attempts in WTI (oil futures on NYMEX) from Friday’s slump finally regained traction in the European session this Monday, as the bulls take back charge above the 56 handle amid the renewed optimism over the US-China trade deal. The WSJ reported earlier today that both the sides are close to clinch a deal that would end the ongoing trade spat.

Moreover, the black gold also benefited from heightening concerns over the tightening global supplies, as the OPEC output cuts get deeper and the Venezuelan exports see a 40% drop in its exports amid the US sanctions.

However, it remains to be seen if the prices can sustain the latest leg up, as the US dollar is seen making a comeback against its major peers on the back of a turnaround in the risk sentiment.

Attention now turns towards the weekly crude stockpiles data due out from the US docket later this week for fresh direction on the prices.

WTI Technical Levels