WTI fades the earlier spike to the $52.00 area
- The barrel of WTI retakes the $51.00 mark and above.
- Traders remain focused on potential OPEC+ output cuts.
- API, EIA supplies reports next of relevance later in the week.
Prices of the barrel of West Texas Intermediate are now returning to the $51.20 region after clinching fresh tops in the boundaries of the $52.00 zone during early trade.
WTI looks to OPEC+
The barrel of WTI met some decent support in the vicinity of the psychological $50.00 support at the beginning of the week, levels last visited in October 2017.
Rumours that the OPEC+ could announce fresh output cuts as soon as next week have been supporting the rebound in prices, although persistent concerns on oversupply keep occasional rallies contained. According to prior surveys, the cartel would be mulling the idea of curbing production by at least 1M barrels.
Moving forward, the API and the EIA are expected to report on US crude oil inventories on Tuesday and Wednesday, respectively, ahead of Baker Hughes’ weekly report on US drilling activity.
WTI significant levels
At the moment the barrel of WTI is gaining 0.01% at $51.46 and a breakout of $52.09 (high Nov.26) would open the door to $54.18 (10-day SMA) and finally $57.94 (high Nov.16). On the downside, immediate support emerges at $50.23 (2018 low Nov.26) seconded by $48.92 (monthly low Oct.6 2017) and then $45.60 (monthly low Aug.31 2017).