WTI Crude Oil Daily Analysis – September 18, 2017

Oil prices rose higher on Friday, marking their biggest weekly gain since July in reaction to a bullish report by IEA. WTI Crude oil prices continue to rise on Monday morning to trade at $50.76, up 0.60%.

According to OPEC, production in August fell by 79,000 barrels a day (bpd) to 32.76 million. OPEC’s secretary-general Mohammad Barkindo said: “It is clear that the rebalancing process is underway.” indicating that growing demand in the second half of the year would continue to cut supplies.

Data from IHS Markit indicated that 13 of 20 affected U.S. refineries were restarting operations after Harvey refinery recovery.

According to reports from Baker Hughes – weekly count of oil rigs operating in the United States declined by 7 to 749.

Technical View

The one-hour chart has formed “Ascending broadening wedge” as currently, prices hold above the support at $49.80. If prices do not break below the support line, then the sentiment is bullish and the next upside rally would be towards $50.50-$52. On the other hand, a break below $49.60 would continue the selling pressure towards $49.20.

The crude oil market trend gives us the impression that the lower highs and lower lows are constantly repeated to create a Double top as seen in the chart. A crossover above the crucial area at $50.60 could lead towards $52.50-55.

Crude oil daily chart has formed the “Symmetrical triangle pattern”. Prices have broken the resistance line at $49.50 and broke above $ 50.50. Currently, prices hold above the 200-day Moving average line which is a positive indication towards $52-55.