Oil markets have been ripping higher for the past 48 hours amid optimism from improving global economic data and the cool down from the scheduled US-China trade talks. Moreover, oil bulls are charging in the afterglow of EIA data that reported a solid draw to crude stocks, with refining activity at a similar pace to last week. The apparition of weaker global demand when U.S. production is near all-time highs hangs like a constant dead weight on market sentiment, and prices seem not to want to break above this level for now.
Crude prices gained traction during yesterday’s session rallying above the 56 and 57 level. However, we are starting to see the market push back through that downtrend line so it’ll be interesting to see how this plays out next week. The 200 day MA is just below, and that of course will be acting as a support level going forward.
Support: 55.00/ 53.15
Resistance: 56.50/ 57.20