WTI Crude Oil Price Inches Above $53 on Upbeat Crude Oil Inventories

WTI crude oil price has inched above the$53 mark as the EIA crude oil inventories report inched came out a lot higher than expected.

The weekly crude oil inventories report from the EIA showed that commercial inventories of US Crude were 2.9 million barrels higher for last week, as against the 1.4 million barrels uptick that the market analysts had predicted. This was however only enough to push crude higher by a few cents to $53.34 as at the time of writing. This translates into a gain of just above 1%.

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Outlook for WTI Crude Oil

The global economic outlook and the US-China trade war headlines have been the main drivers of crude oil price action in the last two months. These two fundamentals tend to create a risk-on/risk-off sentiment in the markets, which affect the price of commodity assets, including WTI crude oil.

After trading mildly lower yesterday on a risk-off sentiment which has largely waned, WTI crude oil price action will look toward the US-China trade summit starting tomorrow for more direction.

Positive headlines will create a risk-on sentiment which could open the door for a test of the 54.20 price level (23.6% Fibonacci line which corresponds to the neckline of the completed double bottom of June 2019 on the daily chart.

Negative trade headlines will create a risk-off sentiment, which could lead to further downside that could test the previous double bottom price of 50.52 (Dec 2018 lows).

Watch out for the headlines from the US-China trade summit.

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WTI crude oil price chart (daily)