Overnight, West Texas Intermediate crude (WTI) advanced further since the rebound from the broad support region at $57.00-45 and posted its largest gain in almost two weeks, following the signing of a trade truce between the U.S. and China on Wednesday.
Elsewhere, the U.S. Senate approved a new trade deal between the U.S., Mexico and Canada on Thursday, a key victory for President Donald Trump as the Senate officially opened a historic impeachment trial against him.
Under the initial settlement between the world’s largest economies, China pledged to increase purchases of U.S. commodities. Also, the Senate approved President Trump’s U.S.-Mexico-Canada (USMCA) trade accord that revamps the 1994 NAFTA agreement, which fuelled optimism about economic growth.
Prices rebounded after sinking to a six-week low at $57.35 on Wednesday when the Energy Information Administration reported domestic petroleum stocks had expanded to the highest levels in four months.
According to the 96-page first-phase U.S. and China agreement signed on Wednesday, China has pledged to buy at least $52.4 billion of U.S. energy products over the next two years. Beyond trade developments, energy investors weighed signs of rising petroleum-product supplies.
A report from the Energy Information Administration data on Wednesday showed much bigger-than-expected supply increases of 6.7 million barrels for gasoline and 8.2 million barrels for distillates for the week ended Jan. 10. U.S. crude supplies, however, fell by 2.5 million barrels last week, EIA data showed.
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, immediate resistance comes in at $58.65 with $60.70-75 viewed firmer above.