For the 24 hours to 23:00 GMT, Crude Oil prices rose 1.68% against the USD and closed at USD53.76 per barrel yesterday, after the American Petroleum Institute reported that crude oil inventories surprisingly declined by 4.27 million barrels for the week ended 24 January. Also, reports indicated that OPEC might extend oil production cuts until at least June 2020 from March and deepen the reductions, if demand for oil in China reduces due to the spread of coronavirus.
In the Asian session, at GMT0400, the pair is trading at 54.19, with oil trading 0.8% higher against the USD from yesterday’s close.
The pair is expected to find support at 53.18, and a fall through could take it to the next support level of 52.16. The pair is expected to find its first resistance at 54.71, and a rise through could take it to the next resistance level of 55.22.
Crude oil is trading above its 20 Hr and 50 Hr moving averages.