WTI crude oil price seesaws around the five-month highs but off the daily high after earlier today hit 43.30. Positive sentiment around the demand for crude oil continues as Wall Street indices hit record highs. This week the new confirmed infections in the USA have dropped, easing the fears that the economic recovery might be halted due to a second wave of coronavirus.
The economic data around the globe shows some signs of improvement, but we are still away from a V-shaped recovery. Today the housing sector in the U.S presented better figures than in 2019. The U.S. Housing Starts Change rose to 22.6% in July from 17.3% in June. The Building Permits came in at 1.495 million beating the expectations of 1.32 million in July reaching the 2019 levels. The Building Permits Change rose to 18.8% in July from the previous 2.1%.
OPEC+ members will hold a meeting on August 19 to discuss the members’ compliance on the oil production cuts agreement and the future moves.
OPEC expects crude oil demand to reach 90.6 million barrels per day, while the International Energy Association forecasts the global oil demand to reach 91.9M barrels per day in 2020. IEA also expects oil demand at 93.8M barrels per day in the third quarter and 96.7M barrels per day in the fourth quarter of 2020.
WTI Crude Oil Price Technical Analysis
The WTI crude oil price is 0.14% higher at $42.96, keeping the positive momentum that started the previous week, alive. A new rally looks possible for WTI futures as long as the price holds above the 200-day moving average.
WTI oil price first resistance stands at 43.29 the daily high. More sellers await at 43.52 the high from August 5. We have to go back to March 6 for the next resistance, which stands at 46.06.
On the other hand, support for WTI crude oil is at 42.40 today’s low. A break below would challenge 42.02 the 200-day moving average. A credible break below 42.02 would attract more sellers targeting 40.41 the 50-day moving average.