The WTI crude oil prices rose by 0.4% while registering $51.40, mainly due to the possible output cuts by the OPEC+. The U.S. West Texas Intermediate (WTI) crude (CLc1) futures were up 15 cents, or 0.3%, at $51.10 a barrel, also heading for a fifth consecutive week of losses.
It is worth to mention that the oil prices managed to recover despite registering an increase in the inventory numbers. By the way, oil prices got support after the latest activity figures from the global powerhouses like the U.S., E.U., and the U.K.
Crude oil prices sharply rose earlier in the session after China’s central bank governor said the world’s second-biggest economy could experience disruptions in the first quarter, while Japan announced a significant increase in confirmed coronavirus cases among thousands of passengers.
Traders now will keep their focus on the U.S. employment data and Baker Hughes Rig Counts for taking fresh directions. While January month employment figures from the U.S. are more expected to keep the U.S. dollar on the front foot, a continued drop in rig counts could help energy optimists.
Daily Support and Resistance
- S1 46.76
- S2 48.89
- S3 50.08
Pivot Point 51.02
- R1 52.22
- R2 53.15
- R3 55.29
The technical side of the crude oil remains bearish as the U.S. Oil is still trading bearish at 50.30, maintaining a bearish channel. Crude oil may find resistance at the double top level at 52.09, which is the same level where downward trend line tests the previous high, making it a more stronger level. On the lower side, the support is likely to be found around 49.75 and 49. Consider taking sell trades below 51.02 level today. Good luck!