WTI crude oil prices rose because markets remained cautious that the Trump administration would resort to another delay of the much-ballyhooed December 15 tariff hike on China. Crude oil prices rose after the Wall Street Journal, referring insiders in the US and Chinese governments, stated that the groundwork was being set for a delay of the tariffs set to impose on Sunday.

The United States and Chinese trade negotiators are continuing to deal over how to get China to commit to massive purchases of US farm products that President Donald Trump was asking on for a partial deal. Besides, the White House economic advisor Larry Kudlow, speaking at a Journal conference, downplayed the possibility of a delay.

The reality is those tariffs are still on the table, the December 15 tariffs, and the president has indicated that if the short strokes remaining in negotiations do not pan out to his liking, (then) those tariffs will likely go back into place.

Markets have been looking out for ideas on what the Trump Administration is expected to do before the deadline for the extra tariffs on $156 billion of Chinese goods. Another senior Trump cabinet official, Agriculture Secretary Sonny Perdue, hinted that he believed the president did not want to impose the new tariffs on China, although he said that Trump wanted to see “progress” from China to avoid such a move.

Daily Support and Resistance

S3 56.77

S2 57.75

S1 58.29

Pivot Point 58.73

R1 59.27

R2 59.71

R3 60.69

On the technical front, WTI crude oil is not showing strong directional moves as investors are confused about the Phase one trade deal. Moreover, all eyes stay on the US CPI and FOMC rate decisions as to the negative correlation between the US dollar and crude oil prices also impact the market.

The black crack may find support around 58.20 level along with resistance at 59.30. The 20 and 50 periods of EMA are suggesting buying trends in oil. Therefore, the continuation of a bullish trend can extend buying until 60. On the flip side, a bearish breakout of 58.20 can drive more selling until 57.30. Good luck!