Crude oil prices surged to their highest level since Feb 17, as markets speculate OPEC will extend the production cut until end of next year along with Russia.
Tensions between Iraq and Kurdistan also supported crude’s rally. Brent and WTI oil price climbed to $60 and $54 respectively. Strong oil price are expected to underpin weakness in the oil & gas sector in the Singapore market.
Technically, oil prices are riding an uptrend but is facing some immediate resistance at $54.0 area, which is also its 100% Fibonacci extension level. The next resistance level will be $54.7 and $56.3 respectively.
Separately, three of Trump’s former campaign managers have been charged after an investigation into Russian links to the election last year. The White House is facing another round of Russian scandals ahead of President Trump’s first Asian trip in early Nov. The US dollar retraced from two-month highs and stocks fell across Asia through the US yesterday.
This morning, China’s official manufacturing PMI came in at 51.6 – missing market expectation of 52.0. This showed unexpected slowdown in the mid-large sized manufactures comparing to the previous month.
Crude Oil West Texas - Cash
• The 10-Day Simple Moving Average and SuperTrend (10,2) are both sloping upwards.
• Challenging 100% Fibonacci Extension level at $54.0 area
• May face some resistance further at $54.75 area, which is the previous high
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