Oil poised for a weekly advance as prices hit new highs
Oil is poised for a weekly advance as investors await upcoming US-China trade talks.
FUNDAMENTAL OVERVIEW:
Oil prices climbed over 1% on Friday, heading for a weekly gain as easing trade tensions between major consumers China and the U.S., along with Britain’s announcement of a trade deal with the U.S., boosted market sentiment.
U.S. West Texas Intermediate crude rose $1.21, or nearly 2%, to $61.12, with both benchmarks on pace to post weekly gains exceeding 4%.
Meanwhile, U.S. Treasury Secretary Scott Bessent is scheduled to meet with China’s top economic official, Vice Premier He Lifeng, in Switzerland on May 10 to address ongoing trade disputes that have weighed on oil demand.
Despite recent gains, oil prices still face notable challenges. OPEC and its allies (OPEC+) are preparing to ramp up production, which could exert downward pressure on prices. A Reuters survey revealed that OPEC’s overall output dipped slightly in April, as declines in Libya, Venezuela, and Iraq offset planned increases elsewhere.
At the same time, U.S. sanctions targeting two smaller Chinese refiners—accused of importing Iranian crude—have disrupted their operations. Sources report that these refiners are now selling products under alternative names. The move signals a heightened U.S. effort to cut Iran’s oil revenue and push for renewed nuclear talks.
CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Crude Oil is trading within an up channel.
Crude Oil is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 61.40
Immediate support level: 59.33
HOW TO TRADE CRUDE OIL
Having experienced a significant drop, Crude Oil found a footing and has since staged a strong upward reversal. This bullish momentum continues, with the price recently breaching a key resistance level and currently trading above it. While further gains appear likely, a retest of the broken resistance or a temporary pullback could occur before the upward trend resumes.
