WTI Crude Oil (current price: $51.25)
Oil had a very volatile session as traders were focusing on the $50 level, as we expected. The commodity started the day with significant losses after the Chinese Trade Balance number, but it trended higher throughout the day afterwards, even following the bearish U.S. Inventories data. Stockpiles rose by 4.2 million barrels, as the market remains oversupplied before the much-awaited OPEC production cut, with the U.S. output starting to rise from its summer lows.
Our assessment: WTI Crude experienced a strong intraday reversal, as the relative strength of the commodity is still intact, with the prior highs near $52 providing a key resistance zone just above the current levels.
