Crude oil prices started the European session higher today adding 0.28% at $57.55 after White House adviser Larry Kudlow said that China and US are close to a trade deal. 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.
EIA reported a 2.219 mb increase in US crude oil stocks as against expectations of a 1.1 mn bbl increase. US crude stocks rose for the third consecutive week amid higher crude production. US crude oil production increased to fresh all-time high of 12.8 mb per day.
Support to crude coming from reports indicating that OPEC+ producers might consider production cuts in their next meeting in December.
Crude oil prices look trapped between the 100 and 200-day moving averages the last two weeks. An attempt yesterday to break above the 200-day moving average ended with correction in late US session bellow the $57.34 resistance.
On the downside, first support stands at daily low at $56.95, followed by the 100-day moving average at $55.94, below that level, the next support comes in at 55.69 the 50-day moving average.
On the upside, crude oil immediate resistance level stands at the daily high at $57.12, 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 100-day moving average.More content