WTI rallies 5% above the $53.00 mark

• WTI sharply up on US-China trade truce post-G20.
• Further upside comes on the potential output cuts.
• OPEC+ meeting on 6-7 next of relevance.

Prices of the barrel of West Texas Intermediate are sharply higher at the beginning of the week, up nearly 5% and retaking levels beyond the key $53.00 mark, or multi-day tops.

WTI stronger on US-China deal, looks to OPEC+

Easing concerns on the US-China trade front following the 90-day truce reached by President Trump and China’s Xi Jinping at the G20 summit encouraged oil-bulls to return to the markets, pushing prices beyond the $53.00 mark per barrel for the first time since mid-November.

In addition, it is more likely than not that the OPEC+ will announce fresh oil output cuts at its meeting on 6-7 December in Vienna, also giving fresh legs to today’s squeeze higher.

That said, all the attention will be on the cartel’s meeting later in the week, as well as the usual weekly reports on US supplies by the API (Tuesday) and the EIA (Wednesday).

WTI significant levels

At the moment the barrel of WTI is up 5.00% at $53.13 and a break above $53.73 (high Dec.3) would aim for $55.67 (21-day SMA) and finally $57.94 (high Nov.16). On the downside, the immediate support lines up at $49.34 (2018 low Nov.29) seconded by $48.92 (monthly low Oct.6 2017) and then $45.60 (monthly low Aug.31 2017).