WTI down to test the 55 dma as greenback surges across the board

WTI dropped sharply from the highs towards $53.00 on a day where Trump just revived the Keystone Pipeline that was previously stalled and put on ice by Obama.

Donald Trump signed a document today clearing the way for the US government to rethink the pipeline and at the same time, Trump was also expediting the Dakota Access pipeline from North and South Dakota to Illinois. This is a positive for local industry for the US oil market.  

US President Trump: if the pipelines are built in the USA, "they should use American steel"

Elsewhere, the uncertainty just keeps building, in respect to Brexit, geopolitical tensions and the public domain in protest of Trump distracting to say the least the best part of the world and especially the US where Trump is failing to settle down nerves of those who are dubious or outright against him and what he stands for, which all is a plus for the dollar under its reserve currency profile and safe-haven status. 

Oil trades in a negative correlation to the dollar and thus with a recent rally in the greenback the black gold is struggling to take off an anything positive for the price in respect to output cuts. Today we will have the API data but we will have to way until  the official OPEC January production data that will not be released until mid-February to see how well the OPEC and non OPEC members are keeping to their pledges within their accord.

WTI levels

In respect to levels, to the downside, 50.00 is the psychological support while a move towards 54.52 would be bullish for a break of the start of the year highs. The 4hr 55 sma, 52.42,  is near term support holding up the sell-off and is guarding 51.30/60 territory before 50.35 being this year's low after there as the Dec 9th bullish gap.