Labour MPs will call themselves the Independent Group

• Bulls benefit from US-China trade progress, DXY softness, Venezuela sanctions and OPEC output cuts
• Holiday-thinned trading could exaggerate the moves, 57.00 on tap

WTI (oil futures on NYMEX) is seen consolidating the steady rise to three-month tops of 56.66, as the bulls take a breather and await fresh US supplies report for the next push higher.

The recent bullish momentum in the black gold gained traction on Monday, after the risk sentiment was boosted on by hopes that the US-China trade spat would be soon resolved. The trade optimism calmed concerns over the global economic slowdown and added to upside in the higher-yielding oil.

More so, increased expectations that the OPEC output cuts will get deeper combined with the US sanctions on Venezuela limiting the oil supplies collaborated to the upbeat tone. Meanwhile, the USD-sensitive oil also cheered broad-based US dollar softness.

Looking ahead, attention now turns towards the weekly US crude supplies reports due later this week for fresh near-term trading directives, especially in light of rising US oil production and higher rigs count number.  

WTI Technical Levels