Oil price eases from new high on uncertainty ahead of G20 / OPEC meetings
WTI oil price eases on Thursday and probe below broken 200SMA, following Wednesday’s spike to new one-month high at $59.91and subsequent pullback that signaled bulls might be running out of steam.
Oil price advanced after data showed surprisingly strong fall in US crude inventories (12.7 mln bls vs 2.5 mln bls draw f/c in the biggest decline since 2016), but was unable to hold gains and closed below cracked 55SMA ($59.49) and left daily candle with long upper shadow.
Traders booked profits on strong 7-days rally, as uncertainty rises ahead of G20 summit and OPEC meeting.
Markets will closely watch the outcome from Trump/Xi meeting, with decision on no more new taxes expected to boost optimism and push oil prices higher.
Also, OPEC is going to decide whether and how to extend the existing deal about production cut, with positive outcome of the meeting to offer fresh support to oil prices.
Current easing could be seen as positioning before fresh attempts higher, with extended dips below 200SMA expected to find ground above key supports at $56.40/25 (Fibo 38.2% of $50.59/$59.91 rally / converging 30/10SMA’s).
Res: 59.24; 59.49; 60.00; 60.47
Sup: 58.60; 58.39; 58.00; 57.19