Crude Oil Bounces off to Start the Week – G20 Summit In Focus!
Arslan Butt • 1 min read
WTI crude oil prices are clawing back upward, after falling 7.7% to $50.42 a barrel on Friday. That’s the biggest one-day decline in three years and the lowest level in more than a year. Today, the upcoming G20 summit and potential of Saudi output cut are underpinning crude oil.
G20 Summit – The US & China Negotiations
Crude oil seems to gain support as traders turn their focus from the US-China tensions to the G20 leaders’ summit later this month. The summit is due to held in Argentina on Nov 30 – Dec 1.
The US President Donald Trump is supposed to meet with his Chinese counterpart Xi Jinping to negotiate and, if both of them come to a lenient tariff policy, this is going to put the dollar under massive selling pressure. Ultimately, the demand for crude oil can surge over the weaker dollar and on the sentiments that the demand for oil’s biggest consumer China may turn back to normal.
Crude Oil – Fibonacci Retracement
Crude oil is heading north towards 23.6% retracement at $51.47 and the bullish breakout of this level can lead it towards 38.2% retracement at 52.30. Whereas, the immediate support prevails at the psychological level of $50 and below this, oil can go after $49.40 and $48.95.