WTI Crude Oil Prices Soar – Sino-US Trade Deal Underpins
Arslan Butt • 2 min read
WTI crude oil prices are flashing green in the wake of Sino-US trade deal closeness, as well as from OPEC’s efforts to constrain supply. However, trading markets were quiet because of the holiday mode. The West Texas Intermediate was up 20 cents, or 0.3%, at $61.31 a barrel.
WTI crude oil prices are still showing the year-end strength mainly supported by the trade deal progress between the United States and China, as well as the December OPEC/OPEC+ agreement, and slowing shale activity,
At the trade deal front, United States President Donald Trump said that he and Chinese President Xi Jinping will have a singing ceremony soon wherein they will sign the phase-1 agreement to end their conflict. As we mentioned previously, the nearly 17-month ongoing trade war badly hit the global economic growth and oil demand.
It should be noted that the so-called OPEC+ grouping agreed in November to continue and deepen production cuts that would take as much as 2.1 million barrels per day (BPD) of supply off the market, or approximately 2% of global demand.
However, there are chances for more supply later this year because Saudi Arabia and Kuwait agreeing to end a conflict over their Neutral Zone, and with the help of this they can supply as much as 500,000 barrels per day of oil or about 0.5% of global demand.
Daily Support and Resistance
Pivot Point 60.89
The WTI crude oil’s bullish channel continues to play as it’s keeping oil supported around 60.50 along with resistance around 61.10. A bullish breakout of this resistance can extend buying until 61.75. The RSI and MACD hold in the buying zone, suggesting chances of a bullish bias in the crude oil.
WTI is likely to trade bullish above 60.89 and bearish below the same level. Whereas, the bearish breakout of 60.89 support can lead to crude oil prices towards 59.95. Good luck!