WTI Crude Oil Prices Rise – Optimism Surrounding China’s Coronavirus
WTI crude oil prices climbed sightly after strong losses during this week, mainly due to the World Health Organization (WHO) which gave some hope that coronavirus will likely be controlled soon. The US West Texas Intermediate (WTI) futures (CLc1) were up by $1.06 to $53.20 a barrel. The contract fell 2.2% on Thursday and is now 1.8% lower for the week.
WTI crude oil prices dropped almost 4% through Thursday this week, having hit three-months lows before recovering on Friday in the wake of China coronavirus fears as investors and traders worried over how the spread of the virus would impact demand for oil and its products.
SCMP mentions that the Wuhan coronavirus has now spread to all 31 regions of China, while Xinhua conveys that Chinese Shandong province has asked companies not to restart work before February 10.
However, the World Health Organization (WHO) announced that current restrictions on commerce weren’t necessary, and there’s no need for travel restrictions and trade bans due to the coronavirus.
It is worth mentioning that the Oil prices were also supported by China’s January manufacturing PMI data, which came in at 50.0 as expected.
Daily Support and Resistance
S3 49.96
S2 51.26
S1 52.12
Pivot Point 52.57
R1 53.43
R2 53.87
R3 55.18
WTI is trading in a bearish trend trading below 53.65 resistance, and now it’s heading towards the next support area of 51.20 The RSI and Stochastics are in the oversold region, but it’s trying to come out of the oversold range. We should look for selling below 52.57 to target 51.30.
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