WTI climbs to highs above $47.00

Crude oil prices are extending the upside momentum on Monday, so far lifting the West Texas Intermediate to the $47.00 mark per barrel.

WTI bolstered by OPEC, USD weakness

WTI is gathering further traction today helped by the renewed selling pressure around the greenback, which has deflated from recent highs seen over a decade ago when tracked by the US Dollar Index.

In addition, hopes of a deal at the OPEC meeting in Vienna regarding an output freeze were reinforced following comments by Russian President V.Putin, who expects the country to join the agreement. It is worth noting that Russia’s production is around 11 mbpd, the highest levels post-Soviet era.

Looking ahead and with no relevant releases in the US docket, crude oil will face the usual weekly reports on inventories by the API (Tuesday) and the EIA (Wednesday) along with Baker Hughes’ US oil rig count (Friday).

WTI levels to consider

At the moment the barrel of WTI is gaining 1.73% at $47.16 with the next up barrier at $48.75 (high Aug.19) followed by $50.54 (high Jun.22) and then $51.60 (high Oct.10). On the other hand, a breakdown of $45.91 (20-day sma) would aim for $44.58 (200-day sma) and finally $42.20 (low Nov.14).

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