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WTI clocks fresh 2-week highs above $48, EIA data in focus

  • Lifted by risk-on action in equities amid US-China trade talks, China stimulus hopes.
  • Supply overhang and global growth worries continue to keep WTI in check.

WTI (oil futures on NYMEX) reversed losses to extend its upbeat momentum into a fourth straight session, as the bulls conquer the 48 handle amid a renewed risk-on wave that gripped the financial markets on Friday.

The underlying risk-on market profile was mainly fuelled by fresh hopes of a US-China trade deal after the Chinese Commerce Ministry said that it would hold trade talks with the US on Jan. 7th and 8th. Also, increased expectations of further stimulus likely to be rolled by China lifted the demand for oil. China is the world’s no. 2 oil consumer.

However, markets remain wary about the oil-price recovery amid global economic slowdown fears, especially after the ISM showed broadest US slowdown in manufacturing growth in a decade while the Asian and European manufacturing sector activity also deteriorated.

Further, looming oversupply worries could also keep a check on the upside. The US crude output rose to an all-time high of 11.537 million barrels per day (bpd) in October while a big build was reported in the gasoline inventories, the latest API data showed late-Wednesday.

Markets now look forward to the official US government crude stockpiles data due to be published by the Energy Information Administration (EIA) later on Friday for fresh trading impetus. Also, of note remains the Bakers and Hughes oil rigs count data due at 1800 GMT.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 48.14
    Today Daily change: 1.1e+2 pips
    Today Daily change %: 2.43%
    Today Daily Open: 47
Trends:
    Previous Daily SMA20: 48.47
    Previous Daily SMA50: 53.1
    Previous Daily SMA100: 61.77
    Previous Daily SMA200: 65.3
Levels:
    Previous Daily High: 47.67
    Previous Daily Low: 45.56
    Previous Weekly High: 47.09
    Previous Weekly Low: 42.45
    Previous Monthly High: 54.68
    Previous Monthly Low: 42.45
    Previous Daily Fibonacci 38.2%: 46.86
    Previous Daily Fibonacci 61.8%: 46.37
    Previous Daily Pivot Point S1: 45.82
    Previous Daily Pivot Point S2: 44.63
    Previous Daily Pivot Point S3: 43.71
    Previous Daily Pivot Point R1: 47.93
    Previous Daily Pivot Point R2: 48.85
    Previous Daily Pivot Point R3: 50.04

 

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