- Lifted by strengthening Chinese crude demand, 2019 OPEC output cuts talks.
- But bounce limited by USD comeback and rising US oil supplies.
WTI (oil futures on NYMEX) is seen trying hard to extend the bounce above the 5-DMA barrier at 62.46, but in vain, as the sellers continue to lurk amid broad-based US dollar rebound and record US oil output levels.
The recovery attempts remain capped, as markets weigh in a whopping 11.6 million bpd rise in the US oil production in the week ending November 2. More so, the ongoing recovery in the greenback versus its major peers following a slide led by a Democrat’s House win yesterday.
However, the bulls continue to find some respite from the latest talks about the OPEC planning output cuts extending into 2019. Meanwhile, firming crude oil demand from China also helps keep the downside cushioned in the barrel of WTI. China’s October crude imports surged 32 percent from a year earlier to 40.80 million tonnes, or 9.61 million barrels per day (bpd), data from the General Administration of Customs showed on Thursday
Attention now turns towards the key FOMC monetary policy decision due later tonight for fresh impetus on the USD-sensitive oil.
WTI Technical Levels
Resistance: 62.46 (5-DMA), 62.84 (daily R1), 63.18 (Nov 7 high).
Support: 61.81 (April low), 61.22 (8-month lows), 60.50 (psychological levels).
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