WTI Crude Oil Daily Analysis – December 28, 2017

WTI crude oil prices edged lower on Wednesday but trade higher on Thursday morning near the psycological level at $60 a barrel. On Tuesday, WTI crude oil was trading at $60 but did not break above this level.

“The market continues to gravitate towards bullish news but today we are seeing a little bit of profit-taking,” said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut.

API data revealed that the U.S. crude stocks fell more than expected last week.

According to traders – The high prices are a result of a relatively tight market following a year of OPEC and Russian led production cuts, which were started last January and scheduled to cover all of 2018.

Oil prices are also being supported by the pipeline outages in Libya and the North Sea.

Technical Outlook

Crude Oil 4H chart has formed the “Rising Wedge” pattern. Crude oil prices consolidated in the last sessions between $59.50 to $60.

Once the market breaks above the resistance level at $60, then the rally could test $60.50-$61 levels in the upcoming sessions. Additional Support holds at $58.50.