WTI extends the upside to the $59.00 mark

• The recovery in WTI fails just ahead of $59.00.
• Optimism on the US-China trade front bolsters prices.
• US oil rig count coming up next in the docket.

Prices of the barrel of the American reference for the sweet light crude oil are prolonging the recovery from recent lows and are flirting with the key $59.00 mark on Friday.

WTI meets contention around $57.50

Prices of the West Texas Intermediate have been trading within a positive note on Friday and within a sideline theme after Chinese GDP figures (published during the Asian trading hours) failed to surprise markets during the October-December period, triggering doubts among traders regarding the demand for crude oil in China.

However, the commodity managed to regain buying interest following the signing of the ‘Phase 1’ trade deal between the US and China, while renewed optimism in the global markets regarding the start of the ‘Phase 2’ negotiations have been also collaborating with the better mood in price.

Additionally, and also supportive of higher prices, the EIA reported on Wednesday an larger-than-expected drop in US crude oil supplies during last week, somewhat reversing the recent trend.

Later in the session, Baker Hughes will report on the US drilling activity in the past seven days.

WTI significant levels

At the moment the barrel of WTI is gaining 0.20% at $58.72 and faces the initial hurdle at $59.32 (61.8% Fibo of the December-January rally) seconded by $60.53 (50% Fibo of the December-January rally) and finally $65.66 (2020 high Jan.8). On the other hand, a break below $57.65 (200-day SMA) would aim for $57.40 (2020 low Jan.15) and then $57.24 (100-day SMA).