WTI edged higher in yesterday’s session to close at $57.04, as prospects of a tariffs rollback between the U.S and China could prompt the IMF to revise it’s global growth forecasts upward, which would drive energy prices higher. Today investors await the release of the Baker Hughes Oil Rig Count, which serves as an important business barometer for the oil drilling industry. A higher than expected figure will translate into an expected higher demand for oil products which will push the price of a barrel of oil higher.
WTI maintained an upward trend in yesterday’s session, testing both resistance levels at $57.21 and falling 2 cents short of R2 at 57.85, and registering a high of $57.83. A close below $56.50 will open the door for further retracement to S1 at $56.22 as WTI is currently trading below the 20, 50 and 200 period SMA.
Support: 56.22/ 55.85 / 55.50
Resistance: 56.58/ 57.21/ 58.19