Brent crude extends gains for a third day in a row. Prices registered two-month highs around the $64 handle and tries not to lose the upside momentum after some consolidation during the Asian session on Friday. Now, the immediate hurdle for the market comes at the 200-DMA around $64.30.
The rally was fueled by positive comments from China. The government officials confirmed that the two countries remain in close contact and the talks are set to continue. This helped to ease market concerns over a phase one deal as mid-December tariffs looming. Also, oil traders cheered the reports that OPEC+ countries may deliver deeper production cuts next month in order to support the market.
Against this backdrop, Brent turned positive in the weekly charts and showed a spectacular recovery from recent lows. Nevertheless, the prices still remain stuck between the 100- and 200-DMAs and need a firm break above the latter to confirm a bullish breakthrough. Otherwise, a partial profit taking could follow and take the futures back below $62.40. In the near term, prices will continue to react to trade-related headlines and further positive comments from this front may help traders to push the barrel above $64.