- Prices of WTI are holding on to the $54.00 mark/bbl today.
- Traders look to developments from the US-China trade front.
- OPEC oil supply dropped in January.
Prices of the barrel of the West Texas Intermediate are struggling for direction around the $54.00 mark in the second half of the week.
WTI focused on US-China trade talks
WTI is adding to its weekly gains around the $54.00 handle, up for the third session in a row and trading at shouting distance from yesterday’s fresh 2019 peaks near $54.70.
The offered tone in the greenback is also collaborating with the upbeat momentum in crude oil prices, which remain propped up after the OPEC said its output dropped by the largest amount this month, led by production cuts in Saudi Arabia.
It is worth recalling that crude oil prices advanced further on Wednesday after the EIA reported a smaller-than-expected build in US supplies during last week.
What to look for around WTI
Crude oil prices are attempting to break above the multi-day sideline theme prevailing since mid-January. That said, the OPEC+ agreement to curb oil output keeps sustaining the optimism in prices, aided by supply jitters coming from Libya and sanctions against Venezuela and Iran. However, extra gains in crude oil prices appear somewhat eclipsed by the probability of a global slowdown, uncertainty around the US-China trade dispute and omnipresent concerns over a supply glut led by increasing US oil production.
WTI significant levels
At the moment the barrel of WTI is advancing 0.07% at $54.08 facing the next up barrier at $54.73 (2019 high Jan.30) seconded by $58.00 (high Nov.18 2018) and finally %59.06 (100-day SMA). On the other hand, a break below $53.17 (10-day SMA) would aim for $51.81 (21-day SMA) and then $51.13 (low Jan.28).
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