December WTI Crude Up 1.75%
After a moderately bearish four days of trade, December WTI crude oil futures are closing the week on a high note. At press time (1:15 PM EST), prices are holding firm above the key $55.00 psychological level. Following a stronger-than-expected U.S. Non-Farm Payrolls release and subsequent equities rally, it appears that the prospects of future economic growth are brightening.
A few minutes ago, the weekly Baker-Hughes Rig Count was released to the public. North American oil rigs fell to 691, a decrease from 696 reported last Friday. With sub-$60.00 WTI valuations and the winter months rapidly approaching, the drop in rigs is not much of a surprise.
All in all, it has been an interesting week in the global oil markets. FED rate cuts and strong U.S. employment have drawn some bids to WTI crude oil. Let’s dig into the longer-term technicals and see which direction this market may be heading.
Will WTI Crude Oil Close The Week Above $55.00?
Below is the weekly December WTI crude oil chart as of Thursday’s close. Today’s price action has been positive, reversing early week losses. In the event we see WTI close above $55.00, it will be the second week in a row that prices have settled above this key psyche level.
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As we roll toward next Monday’s action, there are two levels on my radar:
- Resistance(1): Weekly SMA, $55.72
- Resistance(2): Bollinger MP, $55.99
Overview: The fundamentals appear to be shifting in the WTI markets. Not too long ago, the impact of fall seasonality, flagging economic growth, and U.S./China trade war strife made $50.00 WTI crude oil look like a bargain. Now, trade war optimism, FED rate reductions, and OPEC production cuts are attracting bids to the market.
No doubt it, October brought significant downside stability to the global oil markets. Can November sustain the momentum? We are certainly going to find out.
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