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WTI challenges Friday's highs

  • Correction upward extends on thin Monday trading.
  • Political factors affecting oil at the beginning of the week.

West Texas Intermediate crude futures are higher mid-US session, hovering a few cents above Friday's high. The US benchmark trades at $57.77 a barrel, after a failed terror attempt in Manhattan bus terminal. Speculation that a colder weather will fuel demand in the northern hemisphere, alongside with broad-based dollar's weakness adds to today's gains.

Crude oil prices are in recovery mode ever since last Thursday, when the price of US crude fell to 55.81 on fears increased US production will offset OPEC efforts to rebalance the market. The following recovery was partially triggered by  unrest in the Middle East, following US President Trump announcement that the country will move its embassy in Israel to Jerusalem, later fueled by Chinese data, as during November, the country imported 9 million barrels per day, up from 7.3 million in October.

Levels to watch

Technically, the commodity is struggling around the 68.2% retracement of its latest daily decline between 58.86 and 55.81, with an intermediate resistance ahead of the high being 58.28, November 29th daily high. Supports from the current level can be found at 57.35, the 50% retracement of the mentioned rally, and 56.90, today's low.

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