U.S. Crude Flirts With $59

Crude is steady, as it trades just shy of the $59 level. After a rough start to the week, crude has bounced back, with the signing of the Phase One trade accord and a surprise EIA crude inventory drawdown.
Kenny Fisher

U.S. crude has posted gains in the Thursday session. Currently, crude is trading at $58.90, up $0.30 or 0.52%. Brent crude is trading at $65.25, down $0.34 or 0.53%.

EIA Inventory Draw Lifts Crude

The EIA (Energy Administration Information) crude inventories report has indicated mostly declines in recent weeks, and this was the case again on Wednesday, as inventories fell by 2.5 million barrels last week. Analysts had expected a small gain of 0.5 million, and crude prices have responded with gains on Thursday.

Will ‘Phase One’ Deal Lift Oil Prices?

The U.S. and China signed the Phase One trade agreement on Thursday at the White House. The accord marks a breakthrough in the bitter trade war, but is limited in scope and leaves many U.S. tariffs in place against China. The countries are the two largest consumers of oil in the world, so the fact that the U.S.-China trade relationship has improved should help both economies and lead to greater demand and higher prices for oil.

Holidays Lift Retail Sales

Retail sales, the primary gauge of consumer spending, were positive in December. The headline reading improved to 0.3%, up from 0.2% a month earlier. Core retail sales impressed with a gain of 0.7%, above the estimate of 0.5%. The strong numbers were a result of a late-holiday shopping spree by consumers. Still, 2019 saw moderate consumer spending, and inflation levels remain low, as seen in the December CPI release, which dipped to 0.3%, down from 0.2%.

Technical Analysis

The line of 58.75 is fluid on Friday, after gains by crude. The 50-EMA line is close by, at 58.98. Above there is resistance at the round number of 60.00. On the downside, there is support at 58.00. This is followed by a support level at 57.25, which has held since December 3.

WTI/USD 1-Day Chart
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.