8 November 2019, 13:11
- WTI recedes to lows near $56.00.
- Higher greenback, trade weigh on prices.
- Latest EIA build in supplies hurt sentiment.
Prices of the barrel of WTI are trading on the negative ground at the end of the week and are testing lows in the $56.00 neighbourhood.
WTI moves lower on trade rumours
Crude oil has resumed the upside on Friday as traders appear more cautious on the positive outcome of the US-China trade negotiations. In fact, optimism that both countries could sign the ‘Phase One’ deal in the very near term has faded somewhat in past hours, sparking some selling pressure.
In addition, another build in US crude oil supplies as reported by the DoE on Wednesday keep weighing on the traders’ sentiment and collaborate with the downside. In the same direction, the persistent rally in the buck also keeps occasional bullish attempts in crude oil limited.
Later in the session, driller Baker Hughes is expected to publish its weekly report on US oil rig count, which has shown a persistent decline in past weeks.
WTI significant levels
At the moment the barrel of WTI is losing 1.52% at $56.27 and a breakdown of $56.02 (100-day SMA) would expose $55.49 (55-day SMA) and finally $53.71 (low Oct.31). On the upside, the next resistance lines up at $57.50 (monthly high Nov.5) followed by $60.00 (psychological handle) and then $60.94 (monthly high Jul.11).