Crude Oil prices continue to rise despite negative EIA inventory data released yesterday.
Crude Oil prices extended their gains on Thursday in Asia on U.S.-China trade hopes. Positive China data was also cited as supportive.
The main driver of the prices is the optimism that the world’s biggest economies were close to ending their trade war, as the latest round of high-level trade talks is being held in Beijing this week.
U.S. Treasury Secretary Steven Mnuchin said on Wednesday the talks were going well, while President Donald Trump is considering pushing back the deadline by 60 days, Bloomberg reported citing people familiar with the matter.
The President told reporters earlier this week that he is open to let the original March 1 deadline slide if the U.S. and China get closer to a deal, though he added he was not “inclined” to do so.
U.S. tariffs on $200 billion worth of imports from China are scheduled to rise to 25% from 10% if the two sides don’t reach a deal by the deadline.
Meanwhile, customs data showed on Monday that China’s crude oil imports in January rose 4.8% from a year earlier, customs data showed on Thursday, to an average of 10.03 million barrels per day.
Meanwhile, OPEC production cut and Venezuela turmoil continue to support the prices.
Technical Overview and Key Levels:
Our latest trades reached their targets. CRUDE OIL BREAKS THE SHORT TERM TRENDLINE
Crude Oil March Contracts are trading at 54.35 as of writing. After testing 54.60, prices dropped 54.00 but headed north again.
54.69 is the key resistance. A clear breakout and H4 closing above 54.69 would carry the prices 55.47 and our main target 56.25.
On the downside 53.91 is the first support.
We would like to wait for the daily closing above 54.69 to add long positions. However, potential pullbacks towards 52.00 levels can be used as buying opportunities.
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