WTI crude oil prices recovered from a dramatic 8%-fall in their last session mainly because the Saudi-Russian deal is very close to happening. However, WTI crude oil continues its recovery gains for the 4th-time in preceding five days, currently up 3.1% on NYMEX Futures to 29.85, ahead of the European session on Tuesday. At press time, WTI crude oil prices are currently trading at 26.87 and consolidating in the range between 26.34 and 27.19.

As per Russian Direct Investment Fund’s chief executive, Russia and Saudi Arabia are “very, very close” to an agreement to cut production. Therefore, I think the entire market can understand that this agreement of production cut is important enough, and it will bring lots of stability in the market.

According to Dmitriev’s statement, Russia is much interested in maintaining oil prices, and there is political will. Everyone wants high prices for oil. Not the United States nor Russia, nor the Saudis. From this point of view, I think there should be a reasonable agreement achieved at the end of the day.

WTI Crude Oil – Daily Technical Levels
Support Resistance
22.84 28.87
19.71 31.76
13.68 37.79
Pivot Point 25.74

Technically, US oil has passed over the resistance mark of 24.85, which has exposed additional opportunity for buying unto 28.29 level. Formation of candles beneath this level may support us to capture a bearish trade; however, at the same time, bullish trades can be taken instantly above a 24.85 resistance level. The MACD is making significant histograms, which is proposing the chances of further buying in crude oil. Good luck!