WTI bears stall at the 200-DMA, taking on the $58.80s
- WTI holding above the 200-DMA as risk sentiment improves.
- Demand fundamentals supporting the price of energy.
US oil prices have been correcting to the upside following a strong rejection just below the $66 handle when prices peaked at $65.62 following the Iran/US escalations which have been quashed by a form of compromises between leaders.
In more recent trade, the news that U.S.-Mexico-Canada trade agreement was passed coupled with the signing between the China and US trade deal, risk appetite has improved as too have the prospects for oil prices.
At the time of writing, West Texas Intermediate crude is trading at $58.55 having travelled from a low of $57.59 to a high of $58.86. Futures in West Texas Intermediate crude for February delivery also rose, adding 71 cents, or 1.2%, to settle at $58.52 a barrel on the New York Mercantile Exchange.
Analysts at TDS remain heavy sellers of heating oil
"The US-China trade deal, including targets for massive energy purchases from China, and optimistic demand outlooks from OPEC and the IEA offer some support, but the latest DOE inventory stats showed signs of demand weakness," analysts at TD Securities (TDS) explained.
"Indeed, product inventories continue to swell despite lower refinery utilization rates, while negative refining margins across the globe continue to paint an ominous picture for demand moving forward. With that said, CTAs have concluded their selling in WTI, but remain heavy sellers of heating oil."