WTI traveled to the upside overnight as prices recovered from the $58 area towards the $59.3 level. Oil was supported on OPEC+ allies production cut accord and prospects for improved demand following the trade cease-fire between China and the US. The meeting of the Organization of the Petroleum Exporting Countries had drawn to a close with an agreement a nine-month extension. Russian President Vladimir Putin said on June 29 he had agreed with Saudi Arabia to extend existing output cuts of 1.2 million barrels per day, or 1.2% of global demand, until December 2019 or March 2020. Indeed, the combination of the ceasefire trade truce is a positive as well and the prospects of easier monetary policy keep the supply side argument in favor of the bulls also.
Crude prices are recovering from yesterday’s pullback after reaching new highs of $60.26 per barrel and then loosing the momentum. The price is currently battling with the $59.28 resistance level, however the momentum looks more established for the bulls and the a close above that level will send prices higher. We will be focusing on the upside and the next level we will be watching is the $60.55 resistance level.
Support: 59.28 / 58.80
Resistance: 59.99/ 60.55