WTI climbs to 5-week tops above $ 53, US drilling report eyed

WTI (oil futures on NYMEX) climbed more than a dollar from the Asian lows of 52.14, having hit fresh five-week tops at 53.31 before receding slightly to near 53.10 levels. It’s worth noting that the black gold is on track to book the second straight weekly gain, having risen nearly 10% so far this week.

The sentiment around the barrel of WTI remains buoyed amid increased odds of a US-China trade resolution, especially after the US Treasury Secretary Mnuchin noted that the Chinese Vice Premier Liu will visit the US end-of this month for further negotiations. China is the world’s second largest oil consumer after the US.

Meanwhile, falling Iranian crude exports combined with the OPEC supply cuts underway offer further impetus to the ongoing bullish momentum in oil prices. Sources: Iran's crude exports stay subdued in January despite waivers - Reuters

Further, broad-based US dollar weakness amid risk-on trades and dovish Fedspeak also add to the upside in the commodity. However, markets remain cautious amid looming oversupply worries, especially after the EIA report showed swelling US fuel stocks and record high output levels.

Attention now turns towards the US CPI report and Bakers Hughes oil rigs count data due later in the NA session for fresh near-term trading opportunities.

Overview:

Today Last Price: 53.38

Today Daily change: 82 pips

Today Daily change %: 1.56%

Today Daily Open: 52.56

Trends:

Previous Daily SMA20: 48.14

Previous Daily SMA50: 51.86

Previous Daily SMA100: 60.88

Previous Daily SMA200: 64.79

Levels:

Previous Daily High: 53.03

Previous Daily Low: 51.66

Previous Weekly High: 49.41

Previous Weekly Low: 44.52

Previous Monthly High: 54.68

Previous Monthly Low: 42.45

Previous Daily Fibonacci 38.2%: 52.51

Previous Daily Fibonacci 61.8%: 52.18

Previous Daily Pivot Point S1: 51.8

Previous Daily Pivot Point S2: 51.05

Previous Daily Pivot Point S3: 50.43

Previous Daily Pivot Point R1: 53.17

Previous Daily Pivot Point R2: 53.79

Previous Daily Pivot Point R3: 54.54