WTI trades near the day’s high surrounding $60.50 during today's early session as doubts over oil supply from Venezuela and OPEC+ output reductions confronted optimism concerning the US-China trade deal and positive data from China. While power outage and increased sanctions from the US have already weighed on Venezuela’s oil production, the Trump administration’s additional pressure on foreign firms to trade less oil with the nation tightened the global crude supplies. Adding to macro output constraint is OPEC+ production cuts that have been agreed by the organization and Russia. Next in focus are developments surrounding the world’s top two economies progress over the much-awaited trade deal on Wednesday. Meanwhile, upbeat prints of the scheduled manufacturing PMI from the UK and the US could also entertain WTI bulls.
As expected, Crude oil prices edged higher during Friday's session reaching the $60.7 resistance level as the momentum breaks to the upside. The price is currently hovering just below recent highs and has a lot more room to go before entering the overbought zone with this bullish momentum. We will be focusing to witness new highs as the $61.3 resistance level is on our top watch.
Support: 59.99 / 59.4
Resistance: 60.76 / 61.31