The benchmark U.S. West Texas Intermediate (WTI) spot crude oil futures contract inched higher towards $42 per barrel earlier this week and is currently consolidating around this key upside barrier as traders wait for the next catalyst before making a move.
The spot WTI crude oil contract got support earlier in the week after the Organization for Petroleum Export Countries (OPEC) and non-member allies led by Russia, known as the OPEC +, met on Monday. They agreed, in principal, to extend their current oil production curbs beyond January. The oil markets are still waiting on their official 30 November meeting and the one in December where they should make the deal official.
Today the United States will release weekly crude oil inventory levels. The U.S. is also publishing monthly housing starts as well as monthly building permits. Canada is releasing monthly consumer inflation data. The United Kingdom will also publish their monthly consumer inflation data as well as monthly factory gate prices. Britain will also publish monthly housing price index (HPI) and monthly production output data. The European Union will release their final monthly flash consumer price index.
Daily WTI Crude Oil Technical Analysis
Looking at price action on the above four (4) hour MT 4 price action chart, the spot oil contract is trading quietly above $40 per barrel. This spot contract is trading between $40 and $42 per barrel.
The spot contract is also trading just above fifty (50) hour simple moving average (SMA). The first upside barrier comes into play at 16 November high price point. This layer of technical resistance is in play at $42 per barrel. A daily close above this level will open the door to challenge the 11 November high price point at $43 per barrel.
On the downside, the first layer of technical support lines up at the key and psychological level at $40 per barrel. This is the 13 and 16 November low price point. The 50 hour SMA then comes into play at $39.30 per barrel with the 5 November low price point coming into play. This layer of support is at $37.10 per barrel.