WTI breaks above $59, boosted by bullish ZEW data

WTI Crude Oil: A Break Above 60.00 Leads Us To A Selling Opportunity

WTI Crude below 5875/65 targets 5810/00 but try to buy at 5785/75 with stops below 5750. A break lower is a sell signal targeting 5700/5690, perhaps down to 5655/45.

Holding minor support at 5875/65 re-targets 5915/25 ahead of a retest of 5975/85. A break above 6000 takes us to a selling opportunity at 6080/6100, with stops above 6140. Read more…

WTI breaks above $59, boosted by bullish ZEW data

Crude oil prices came under modest selling pressure in the early hours of trading in the European session and West Texas Intermediate a barrel fell towards the mid-low $58 before gaining ground in the final hour. At the time of writing, WTI was up 0.4% on the day at $59.25.

Signs of life in the European economy

The upbeat ZEW survey, which showed economic sentiment in Germany and the eurozone improved sharply in December, appears to have boosted crude oil prices by allaying concerns about the potential negative impact of a deep economic slowdown in the euro area on the demand for energy.

During this time, Goldman Sachs said it raised its 2020 average Brent oil price forecast to $63 from $60 following OPEC+’s decision to deepen oil production cuts by 500,000 barrels per day.. Similarly, Russian Gazprom Neft CEO Alexander Dyukov noted that additional supply restrictions would help support oil prices at $55-65 a barrel in the first quarter, according to the Interfax news agency. Read more…

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Felix J. Dixon