Despite some progress in the US-China trade talks and signs of warming relations between the two world’s largest economies, the uncertainty over the trade deal continue to make investors cautious, which in turn could cap further upside potential in the crude oil market. Traders will closely monitor further developments on this front, with another round of talks will take place in late January.
Technically, Brent needs to confirm a break above $62 in the short term. The key local support now comes at $60. As long as the prices stay above this psychological level, the positive momentum prevails and could send the barrel to fresh one-month highs. The immediate comes at $62.50. In late November and early December, this area capped the attempts, so it may be tough enough to break, especially ahead of the weekend, when traders are tempted to take profit after a decent rally.