WTI off-weekly tops, consolidates above $ 53 amid US-China trade truce

• US-China trade war ceasefire dooms the US dollar, boosts oil prices.
• Further lifted by Alberta’s output cut, expected OPEC output cuts.
•  All eyes on US weekly supplies, Dec 6^th OPEC+ Vienna meeting.

WTI (oil futures on NYMEX) is seen reversing from one-week highs of 53.84, as markets look to take some profits off the table after the recent upsurge induced by a temporary trade truce agreed between the US and China at the G 20 meeting on Saturday.

Despite the retreat, the bulls remain in command amid a risk-friendly market environment, as markets continue to cheer the Trump-Xi trade armistice. Moreover, increased odds of output cuts by the OPEC + also keep the buoyant tone intact around the black. The OPEC and its allies are expected to meet at the annual conference held in Vienna on Dec 6^th to discuss the output cuts.

Furthermore, the risk-on led sell-off in the US dollar combined with the latest report that Alberta forced oil production cuts added to the upside in oil. Reuters reported earlier today that Alberta province will force producers to cut output by 8.7%, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage. Most of Alberta’s oil is exported to the US.

The bulls now await the sentiment on the Wall Street for the next push higher. In the meantime, markets digest the latest announcement by Qatar, citing that they will withdraw their membership from the OPEC, beginning January.

WTI Technical Levels