Crude oil started higher the European session adding 0.35% at $57.07 as bullish signs continue to emerge from positive manufacturing data from China and a drop in US rig counts.
Last 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. Investors are now waiting for U.S. consumer confidence.
EIA reported a nearly 8 mb weekly climb in U.S. crude oil supplies against forecast for relatively modest increases of 1.4 mb. The number of oil and gas drilling rigs in the States fell by five, bringing the number of operating oil rigs to 817, more than 200 fewer rigs than the same week last year. Adding further support to crude were news reports indicating that OPEC+ producers might consider production cuts in their next meeting in December.
Crude Oil Resistance and Support Levels
Crude oil stalled the last trading sessions below the 200-day moving average rejected at that level for the sixth consecutive day. On the upside, crude oil first resistance level stands at the daily high at $57.22, while more offers could emerge at $57.31 strong resistance, the 200-day moving average. Long positions might sit comfortably as long as the crude price trades above the 100-day moving average.
On the downside, first support stands at daily low at $56.5, followed by the 100-day moving average at $56.02, below this level, the next support comes in at 55.65 the 50-day moving average. WTI Crude oil has established a strong support at 50.50 which managed to cancel the bears several times since the beginning of 2019.