WTI crude oil prices climbed ahead of a meeting of OPEC and its partners in the wake of discussing whether to increase output cuts to support the market, whereas industry data showing that the US crude inventories unexpectedly dropped also helped lift prices.
The Organization of the Petroleum Exporting Countries (OPEC) and allies that include Russia – a group known as OPEC+ – are preparing to approve deeper crude output cuts this week when they meet in Vienna, according to Iraq, the group’s second-biggest producer.
We think OPEC will likely announce an extension to supply cuts to cover the whole of 2020 rather than the three to six months the market is currently factoring in,” BNP Paribas (PA: BNPP) Markets said in a note.
WTI crude oil inventories in the US dropped by more than expected last week, according to the industry group American Petroleum Institute (API). Stockpiles of crude oil declined by 3.7 million barrels, more than double the expectations of a decline of 1.7 million barrels.
At the Sino-US front, the chances of the United States and China phase-one trade deal are reducing day by day. The United States President recently warned that the deal may not happen till late-2020 while the US House announced sanctions on senior Chinese diplomats.

Daily Support and Resistance
S3 53.28
S2 54.7
S1 55.48
Pivot Point 56.12
R1 56.9
R2 57.54
R3 58.96
Looking at the 4-hour chart, crude oil has completed a 38.2% Fibonacci retracement at 56.20. Now it’s heading north to complete 61.8% retracement at 57.30 today. At the same level, the 20 and 50 periods EMA are lingering to extend resistance, and these may push oil prices lower.
I will be looking to take a sell trade below 57.30 today with a stop loss above 57.60 and take profit of around 56.80.

Good luck!