Today's trading was somewhat quiet, as we are at the beginning of the week in addition to the American markets holiday today, which has had a clear impact on the movements of oil prices during the day.
Prices have stabilized near their highest levels since late January, as West Texas crude is trading at $ 52.35 levels above an ascending trend line on the 1-hour time frame, and with levels of $ 52.50 exceeded, it is expected to see an acceleration in the rise of oil to new highs.
In the same track, Brent crude prices stabilized at the levels of $ 57.11 per barrel, as well as higher an ascending trend line on the 1 hour time frame and it is expected that with stability above the levels of 57.25, Brent prices would continue to rise to levels of $ 59 a barrel.
What supports the recovery in oil prices at the present time is the news that emerged from China, the second largest oil consumer in the world, about improving control over the spread of the Coronavirus epidemic, in addition to market hopes about the possibility of production cuts that may boost the global supply of oil.
The International Energy Agency had expected last week that corona would cause global demand to decline during the first quarter of 2020 by about 435,000 barrels, which would be the first drop since the financial crisis in 2009.
Oil prices have witnessed a rise during trading last week for the first time since late January in light of the stimulus measures that the Chinese government may take, which may contribute to reviving oil demand for the largest oil importer in the world.
Also, there is optimism that oil producers, or OPEC+, would deepen production cuts when they meet next month. The last agreement was to cut production by about 1.7 million barrels per day until the end of next March.
In light of the recent spread of the Coronavirus, the Technical Committee came out with recommendations to reduce production by about 600,000 barrels per day.