The declines in oil prices stalled after Friday’s data from China. The latest figures for October saw a modest recovery in China’s manufacturing sector.
The Caixin manufacturing PMI rose to 51.7, beating estimates of 51.0 and up from 51.4. Furthermore, Friday’s oil rig count also saw an increase, adding to the bullish sentiment in oil.
WTI Crude Oil Could Test 57.6 Resistance
The current rebound in oil prices comes as price tested the support area of 54.71 – 54.42. The reversal comes as this level previously held as resistance.
Therefore, the upside bias prevails. The upper resistance level at 57.6 – 57.9 will be the next target. But oil prices will need to break past this level to maintain the bullish momentum.
