Crude oil prices gathered momentum, rising for the third consecutive daily session. The gains on Tuesday were over one percent. They came amid US and China trade talks progressing better than expected.
There is also optimism that OPEC could cut production to give prices a boost. However, OPEC also released a report which cut demand for crude oil, but investors brushed it aside.
WTI Crude Oil on Track to Test Resistance
The gains in oil prices come after the bounce from the support area of 54.71 – 54.42. Price action has posted strong gains and the current momentum will see oil prices reaching for 57.64 – 57.87 region.
With resistance likely to form at this level, there is a risk that oil prices could remain range- bound in the short term.
