The energy benchmark increased Monday on positive sentiments favoring an end to the US-China trade spat and supply-cut concerns from OPEC+ alliance. However, prices struggled to carry the gains overnight after investors started doubting the peace accord between the world’s two largest economies while developments from China’s annual parliamentary event were also grim. Looking forward, energy traders will be closely observing developments surrounding US-China trade while the weekly release of API crude oil stock may also gain market attention.
After bouncing back up from the $55.73 support level, Crude prices went back to retest the 57 level but failed and retreated towards the $56 level. The price is currently hovering between the 56.69 and 56.06 levels with a relatively neutral momentum. We expect the price to rise and test the upper band of the symmetrical triangle presented on the chart.
Support: 56.06 / 55.73
Resistance: 56.69 / 57.32