- Prices of WTI faltered in the mid-$59.00s.
- Concerns over tight supply offset trade fears.
- API, EIA next of relevance tomorrow and Thursday.
Prices of the American reference for the sweet light crude oil are looking to extend the recovery following last week’s sharp pullback to the vicinity of the $57.00 per barrel.
WTI focused on trade, supply, data
Prices of the barrel of WTI gained already more than $2 since last Thursday’s troughs, as traders’ attention appears to have now shifted to the persistent tighter supply conditions in the oil markets.
In fact, the lack of fresh developments on the US-China trade front seems to have motivated investors to look for catalysts elsewhere.
Earlier in the session, Kuwait’s Oil Minister Khaled al-Fadhel said he sees a balanced market in the second half of the year on declining global inventories and strong demand.
Moving forward, the API and the EIA will publish their weekly report on US crude oil investors on Wednesday and Thursday, respectively.
What to look for around WTI
Prices of the WTI are prolonging the correction higher so far this week, trimming part of last week’s sharp pullback of more than 10%. In the meantime, the prevailing tight supply conditions have regained the upper hand when comes to determine the price action in detriment of persistent US-China trade jitters. Looking at the broader picture, the ongoing OPEC+ agreement to curb oil production, geopolitical tensions involving the US, Iran, Saudi Arabia, Venezuela and Libya and the above mentioned tight supply conditions are all supportive of higher oil prices in the near to medium term.
WTI significant levels
At the moment the barrel of WTI is losing 0.42% at $58.89 and faces the next support at $58.27 (100-day SMA) seconded by $57.19 (low May 24) and finally $54.37 (low Mar.8). On the flip side, a break above $60.13 (200-day SMA) would aim for $61.66 (55-day SMA) and finally $63.79 (high May 20).
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