WTI crude oil prices hit the bullish market and soared higher mainly due to the report that the Trump administration was pulling back the higher tariffs on the Chinese imports.

Both US West Texas Intermediate and UK Brent crude futures were up about 1% each because traders looked beyond the weak oil demand forecast for next year by the International Energy Agency (IEA) to focus instead on speculation that the tariffs on China may not happen.

Oil was bearish earlier in the day after Paris-based IEA said that global oil outputs would likely rise sharply through March despite an agreement by OPEC and its allies to deepen output cuts along with lower production by the United States and other non-OPEC nations.

“Despite the additional curbs and a reduction in our forecast of 2020 non-OPEC supply growth to 2.1 million barrels per day (BPD), global oil inventories will likely build by 700,000 BPD in Q1 2020,” the IEA said in its monthly report distributed Thursday.

Daily Support and Resistance
S3 56.46
S2 57.54
S1 58.13
Pivot Point 58.63
R1 59.22
R2 59.71
R3 60.79

WTI crude oil prices are consolidating around 58.75 resistance area. Crude oil has entered the overbought zone as we can see in the Stochastic, and a bearish retracement seems imminent.

On the lower side, immediate support is likely to be found around 58. Whereas, the bearish breakout of 58 can trigger further selling until 57.55 area. In case bulls decide to keep trading higher, we may see WTI testing 58.95 and 59.45 areas.

Good luck!