Crude oil prices started the trading week higher adding 0.16% at $57.81 close to two-month highs after positive signs that the two superpowers are close to settling terms toward a phase one trade deal. EIA reported an increase in U.S. production for the previous week. U.S. oil rigs fell by 10 rigs to 674 last week.
U.S. Federal Reserve Chair J. Powell pointed out that the impact of the recent interest rate cut is yet to be seen. He also noted that they expect a sustained expansion ahead for the U.S. economy which might increase the demand for oil.
Support to crude coming from reports indicating that OPEC+ producers might consider production cuts in their next meeting in December.
Crude oil prices managed to break the 200-day moving averages last Friday and continues higher today. On the upside, crude oil immediate resistance level stands at the daily high at $58.00, while more offers could emerge at $58.47 the high from September 24th. On a credible break above that resistance level the next target is at $59.40 the high from September 23rd. Long positions could sit comfortably as long as the crude price trades above the 200-day moving average.
On the flip side, immediate support stands at daily low at $57.75, followed by the 200-day moving average support at $57.36, below that level, the next support comes in at 55.97 the 100-day moving average.More content