Search ForexCrunch
  • WTI advances around 2% to the area beyond $40.00/bbl.
  • Chinese trade data lend oxygen to crude oil prices.
  • API, EIA weekly reports come in later in the week.

Crude oil prices rebound markedly on Tuesday and partially recover ground lost following Monday’s sell-off.

WTI boosted by Chinese data

Prices of the barrel of WTI reverse two consecutive daily pullbacks on Tuesday in response to upbeat figures from Chinese trade data released earlier in the Asian trading hours.

In fact, China reported a $37 billion trade surplus in September, less than initially forecasted. However, Imports expanded sharply by more than 13%, adding to hopes of a recovery in the demand for the commodity. Indeed, China imported nearly 12 mbpd during last month vs. 11.2 mbpd recorded previously.

In spite of the ongoing rebound in prices, concerns among traders persist from the supply side, as Libya’s Sharara oilfield resumed its activity on Sunday, Norwegian oil workers ended the strike and the oil industry resumed its activity in the Gulf of Mexico area following the pass of Hurricane Delta.

Later in the week, the usual report on weekly crude oil supplies from the API and the EIA are due on Wednesday and Thursday, respectively, ahead of the US oil rig count by driller Baker Hughes on Friday.

WTI significant levels

At the moment the barrel of WTI is up 1.67% at $40.14 and faces the next hurdle at $41.46 (weekly high Sep.18) seconded by $43.75 (monthly high Aug.26) and finally $48.64 (monthly high Mar.3). On the other hand, a breach of $39.07 (weekly low Oct.12) would aim for $38.38 (200-day SMA) and then $36.66 (monthly low Oct.2).