Oil prices rise on reduced output by tropical storms / trade optimism but struggle again to clear key Fibo resistance
WTI price accelerated over $1 in mid-European / early US session on Tuesday and hit new three-week high at $43.54.
Oil was inflated by rise of riskier assets on latest news that the US and China remain committed to their trade deal and upbeat data from Germany that both pointed towards faster recovery and diminished persisting fears over recovery of global oil demand.
Additional boost to oil prices comes from massive production cut in the Gulf of Mexico on two strong tropical storms that so far caused shut of 82% the area’s offshore output.
Fresh advance probes again through cracked key Fibo barrier at $43.05 (61.8% of $65.63/6.52), looking for eventual clear break that would signal bullish continuation after larger recovery from $6.52 low paused for three weeks under pivotal Fibo barrier at $43.05.
Traders turn focus towards today’s release of API crude stocks report and Wednesday’s EIA crude inventories, which could additionally boost oil price if US crude inventories fall.
Res: 43.05; 43.54; 44.00; 44.43
Sup: 42.60; 42.33; 41.97; 41.70