- Prices of the WTI met support near the $56.00 mark/bbl.
- USD-buying weighs on traders’ sentiment today.
- WTI has practically bypassed the OPEC+ deal extension.
Crude oil prices are extending the multi-session sideline theme above the $57.00 mark per barrel on Friday, advancing beyond the $57.00 mark and at the same time recording new 3-day highs.
WTI focused on trade, demand
Earlier in the week, the OPEC+ agreed to extend the ongoing deal to curb oil production for another 9 months, although the move was largely anticipated by traders and had no meaningful impact on prices.
Also undermining any serious bull run in prices, the EIA reported on Wednesday that US crude oil supplies shrunk less than initially estimated during last week, while US oil production edged higher.
What to look for around WTI
Crude oil prices have so far faced decent contention around the $56.00 mark per barrel following the US-China trade truce, while a convincing breakout of the psychological $60.00 mark still remains elusive. Despite the decision by the OPEC+ to extend production cuts until the end of Q1 2020 was in line with expectations, it remains another key driver sustaining prices in the longer run along with tight US markets, US-Iran effervescence and the so-called ‘Saudi put’.
WTI significant levels
At the moment the barrel of WTI is up 1.01% at $57.23 and a surpass of $58.16 (200-day SMA) would expose $60.12 (monthly high Jul.1) and then $60.73 (23.6% Fibo of the December-April rally). On the downside, immediate contention emerges at $55.91 (38low Jul.3) seconded by $55.68 (21-day SMA) and finally $50.54 (monthly low Jun.5).
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