- Modest expectations from the US-China trade negotiations.
- The UK-Iran geopolitics remains active but talks in Vienna seem constructive.
- WTI remains below 50 and 200-day MA.
With the constructive talks at Vienna joining hands to receding odds of any breakthrough from the US-China trade negotiations, WTI remains on a back foot below key moving averages (MA) while making the rounds to $56.00 on early Monday.
Despite calling the British proposal to have the EU-led naval mission to safeguard the ships in the Gulf of Hormuz as “provocative” and “hostile”, Iran considered the talks between the remaining parties to the 2015 nuclear deal as constructive, as per the BBC. Representatives from Britain, France, Germany, Russia and China recently gathered in Vienna to salvage the latest tension amid the parties to the key nuclear deal.
On the other hand, the Sky News reported that the UK increased the number of troops to Bahrain to protect its oil ships in the Gulf after Iran’s seizure of the UK ship extends into the second week.
Alternatively, leading news headlines keep low expectations from the trade negotiations between the US and China as none of the parties have shown readiness to clear key stumbling blocks ahead of the two-day talks that start from Tuesday.
Elsewhere, the Baker Hughes US Oil Rig Counts slip for the fourth consecutive week to 776, the lowest since February 2017, as per the Reuters.
While there doesn’t seem any oil-related data on the economic calendar up for publishing today, investors may keep an eye over the qualitative catalysts for fresh impulse.
Technical Analysis
$55.50 – $56.00 area comprising 50 and 200-day MA becomes an immediate key resistance for the oil benchmark to clear in order to aim for $58.30 and $60.00. On the downside, monthly low around $54.70 seems the important support to watch.
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