Crude oil prices trading 0.37% lower at $56.93 per barrel retreating from two-month highs as no major progress in the trade talks between China and US reported yesterday. Energy Information Administration reported last week an increase in U.S. crude production. U.S. oil rigs fell by 10 rigs to 674 from 684 last week.
Reports that OPEC+ producers might consider production cuts in their next meeting in December gives a boost to oil prices.
Crude oil prices today pierced below the 200-day moving average, but the short term momentum is still positive for black gold as it is trading inside the ascending channel that started in October.
Today’s low at $56.81 will provide immediate support for WTI crude oil, followed by the 100-day moving average support line at $55.95, if bears dominate the trend crude oil could fall further to test the support at 55.68 the 50-day moving average.
On the other hand, WTI crude oil first resistance will be met at the daily high at $57.08, if bulls clear the daily high might attempt a test of the 200-day moving average at $57.37. On a constructive break above that level the next target would be the $58.17 the high from November 18th.
Bulls are in control of the short term and only a break below the 100-day moving average might scare them away.More content