Crude oil WTI supported above $63.40 as US-China willing to negotiate over tariffs

• Risk-on mood supports oil prices but fail to break above $63.72.
• Saudi Arabia increases the price of its key Arab Light crude and is seen as bullish. 

The crude oil WTI is trading at around $63.67 virtually unchanged on Thursday as the fears of a trade war between the US and China are easing and both parties are ready to start a six-month-long negotiation in order to settle the issue. US stocks are pushing higher as risk-on is back which is generally seen as positive for the oil demand. 

President Trump said in a tweet that: “We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue.”

Meanwhile, it has been reported that Saudi Arabia, lifted the price of its Arab Light crude in Asia. The news was “interpreted bullishly by futures traders”. According to Laura Hurst from Bloomberg. 

Crude oil WTI weekly chart

The bulls are trying to keep the market above last week’s low.

Crude oil WTI daily chart

The bulls tested $64.11, the low made on April, 23 but didn’t manage to push the price further up ending the day with a neutral bar currently below the $63.72 resistance mentioned yesterday. If the bulls can’t close above $63.72 and $64.11 resistance the crude oil is vulnerable to downside moves towards $62.30 tested on Wednesday.

Crude oil WTI 4-hour chart

The market is forming a base at $63.40. The bulls want the breakout above $63.72 and $64.10 in order to reach the $64.53 supply/demand level; a break of that level can open the doors to a move towards $65.42 swing high. On the flip side, the bears want to create a breakout below $63.40 immediate support and drive the market back to the lows seen on Wednesday at $62.30; a break below that level can open the doors to a move to the $60 figure. Meanwhile, the general trend stays bullish.