The overnight’s session witnessed a spike in oil prices as the bulls were finally unleashed, West Texas Intermediate (WTI), the New York-traded benchmark for U.S. crude surged +21.6% after President Trump said on Thursday that he expected that Saudi Arabia and Russia would substantially cut their oil production to halt the collapse of prices.
President Trump said in a tweet that he spoke with Crown Prince Mohammed bin Salman, who had spoken with President Vladimir V. Putin.
“I expect & hope that they will be cutting back approximately 10 million barrels,” he said.
That figure represents about 10 per cent of normal world consumption.
The president later said the cut could be as much as 15 million barrels. He subsequent tweet read: “…. Could be as high as 15 Million Barrels. Good (GREAT) news for everyone!”
WTI has lost -66% in the first quarter, while Brent nosedived -61% as demand slowly evaporated due to the coronavirus outbreak and a price war between Saudi Arabia and Russia.
Viewing the MACD indicator, at present, since the break above the 0.00 axis, the bullish sentiment has strengthened.
The MACD indicator is a trading indicator designed to reveal changes in the strength, direction, momentum, and duration of a trend.
With the topside destination reached at $28.60-80, (overnight high $28.69) could now see a choppy session into the Friday’s session.
The bullish foundations hold from $16.00-$19.00 (on the wide), with the initial support at $20.00-40 and above viewed from $22.90-$23.50 (wide).