WTI crude oil prices traded flat due to China’s lack of passion for phase one deal announced by the Trump administration last week, whereas West Texas Intermediate crude (CLc1) was down four cents to $60.17 a barrel.

Under the agreement, Washington suspended planned tariffs on Chinese goods in exchange for China’s increased purchases of agricultural, manufactured, and energy products from the US by about $200 billion over the next two years.

WTI Crude Oil prices have received some support this month after OPEC announced that it planned to take as much as 2.1 million barrels, or 2.1%, per day off global oil supplies in the first quarter of 2020.

WTI Crude Oil prices are struggling to increase their gains because investors await further clarity regarding the US-China ‘Phase One’ trade deal.

Lower supply next year due to a planned cut by the Organization of the Petroleum of Exporting Countries (OPEC) and associated producers like Russia – a grouping known as ‘OPEC+’ – and stronger economic growth expected in the wake of the improved trade outlook between United States and China will combine to tighten the oil supply-demand balance next year.

According to the forecast, WTI Crude Oil demand will likely see further improvements because US President Donald Trump will ensure that the US growth remains strong before voters head to polls in November 2020.

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.

Daily Support and Resistance
S3 58.95
S2 59.51
S1 59.83
Pivot Point 60.06
R1 60.39
R2 60.62
R3 61.18

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!