Crude oil prices are higher today adding 0.72% at $57.55 after U.S. Federal Reserve Chair Jerome 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.
President Trump failed to inspire investors after mixed comments; President said that China-US trade deal might happen soon and the phase one agreement is close, but he also said that if a deal isn’t reached the US will raise tariffs.
U.S. crude oil inventories drop by 541,000 barrels in the week to November 8 to 440 million, as reported by the American Petroleum Institute, official data from the U.S. Energy Information Administration will be released later today.
The previous week the EIA reported that supplies of natural gas rose by 34 billion cubic feet for the week ended November 1, against 89 billion cubic feet gains last week. That came below the build of 45 billion cubic feet expected.
Support to crude coming from reports indicating that OPEC+ producers might consider production cuts in their next meeting in December.
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Crude Oil Price Support and Resistance Levels
Crude oil breached today the 200-day moving average resistance a level that oil prices rejected several times before so bulls now look more aggressive.
On the upside, crude oil immediate resistance level stands at the daily high at $57.73, while more offers could emerge at $57.90 the high from November 7th. Long positions could sit comfortably as long as the crude price trades above the 200-day moving average.
On the downside, immediate support stands at daily low at $57.29, followed by the 100-day moving average at $56.01, below that level, the next support comes in at 55.69 the 50-day moving average.More content
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