WTI regains $ 57 and beyond amid trade optimism, OPEC cuts

• Record high US output overshadowed by US-China trade optimism, OPEC supply cuts.
• Broad USD weakness offers support to the US oil, 58 back on sight.

WTI (oil futures on NYMEX) stalled its Asian retreat just below the 57 handle and from there staged a solid comeback in the European session, with the bulls now looking to regain the 58 handle amid a better sentiment towards the risk assets.

The US-China trade progress and Trump’s China tariff deadline delay offered the much-needed respite to the European equities and lifted the overall appetite for the higher yielding assets such as oil.

Moreover, increased odds of tighter global supplies amid supply risks from the US sanctions on Iran and Venezuela and deepening OPEC output cuts also continue to offer support to the black gold. Further, the barrel of WTI also cheers the bullish near-term view outlined by Goldman Sachs earlier today.

However, markets remain wary over rising US output levels, with the US crude oil production at a record 12 million barrels per day (bpd), an increase of more than 2 million bpd since early 2018.

The focus now turns towards the weekly US crude supplies data and Trump-Kim meeting in Vietnam for fresh directives on the commodity.

WTI Technical Levels