Crude oil price remains in the symmetrical triangle consolidating above 20 and 50Dsma for six trading sessions. The price has been knocking at the higher end of the channel but fails to breach.
Initial resistance seems between 54.10 and 54.50 above this 55.25 (Jan 03 high) exists. Alternatively, support finds at 52.70,52.20/52 and 51.20 levels. Earlier channel bottom finds between 50.90 and 50.70, and 49.95 and 49.60 levels.
Speculative investors NYMEX WTI crude net long positions increased by 30951 contracts to 390,338 contracts, the highest since June 2006, a new high.
Bloomberg– The International Energy Agency said the group has achieved a record 90 percent initial compliance with an output accord.
“The OPEC cuts so far are a little bigger than expected and there’s no sign that they are backing down,” Mike Wittner, head of commodities research at Societe Generale SA in New York, said by telephone. “This feeds into expectations that we’re heading into a balanced market.”
American oil producers are hedging their price risk for this year and 2018. Producers’ short positions, protecting against a drop in prices, increased to 755,874 futures and options, the most since August 2007, according to the CFTC.