WTI recovers some ground above the $55.00 mark
- Prices of the WTI move higher following Monday’s sell off.
- President Trump’s comments led the drop yesterday.
- API weekly report on US crude oil supplies next on tap.
The barrel of West Texas Intermediate is posting some decent gains above the $55.00 handle today following yesterday’s deep pullback.
WTI vigilant on Trump, looks to API
Prices of the barrel of the American reference for the sweet light crude oil have regained some shine today and are recovering part of the sharp Trump-sponsored sell off at the beginning of the week.
It is worth recalling that crude oil prices plummeted on Monday after President Trump criticized the OPEC for its policy of higher prices.
Despite the ongoing recovery, prices are expected to remain under pressure, as US lawmakers could invoke the NOPEC bill, exposing the oil cartel to anti-trust laws in the US.
Later in the day, the American Petroleum Institute will report on the weekly US crude oil inventories ahead of tomorrow’s DoE report.
What to look for around WTI
Monday’s attack from President Trump to the OPEC’s policy of intervening in oil prices could open the door for extra effervescence in the coming days, including the probable resurrection of an anti-trust law in the US. On the bright side, optimism around a US-China trade deal should remain supportive of crude oil as well as Saudi Arabia’s (so far) commitment to curb its oil production more than expected (the so-called ‘Saudi put’). Also putting a floor on oil prices emerges the ongoing US sanctions on Iranian and Venezuelan oil exports.
WTI significant levels
At the moment the barrel of WTI is gaining 0.21% at $55.24 facing the next hurdle at $55.91 (100-day SMA) followed by $57.45 (2019 high Feb.22) and finally $58.00 (high Nov.16 2018). On the other hand, a breach of $54.73 (low Feb.26) would aim for $54.54 (21-day SMA) and finally $51.15 (low Feb.11).