West Texas Intermediate crude oil struggles to restart the bullish engines as U.S. and Iran escalation fears ease

January 10, 2020 - 6 months ago
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As the charging bulls on Wall Street continue to post record highs, elsewhere, West Texas Intermediate crude oil has failed to ignite its bullish spark since plummeting almost -5% on Thursday and now slips further into the bearish trenches, after posting an intraday low of $58.50.

WTI rally has cooled dramatically since President Trump said no new U.S. military strikes would follow an Iranian missile barrage on Iraqi bases.

Even China’s assurance on Thursday that its trade deal with Washington next week on the 15th January, couldn’t inspire renewed bullish interest.

China’s Vice Premier Liu He, head of the country’s negotiation team in China and U.S. trade talks, will sign the so-called “Phase-One” deal in Washington next week, the commerce ministry said on Thursday. Gao Feng, a spokesman at the commerce ministry said, Liu, will visit Washington on Jan. 13-15.

Negotiating teams from both sides remain in close communication on the particular arrangements of the signing, Gao told reporters at a regular briefing. U.S. President Trump said on Dec. 31 that the “Phase-One” deal with China would be signed on Jan. 15 at the White House. Trump also said he would sign the deal with “high-level representatives of China,” and that he would later travel to Beijing to begin talks on the next phase.

From a technical standpoint, support is viewed from $57.00-45, which is expected to draw renewed demand if encountered by a bearish challenge.

Viewing the topside, resistance comes in at $60.70-75 with $63.50 firmer above.

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