WTI flirts with 5-month tops near $ 53.50, EIA eyed

Oil futures on NYMEX extended its winning streak into a fifth-day today, as investors cheer bullish API inventory report and recent reports of Saudi Arabia seeking to extend the OPEC output deal cut beyond June this year.

The US API crude stockpiles data released late-Tuesday, showed that the US crude inventories fell by 1.3 million barrels in the week to April 7 to 532.4 million, compared with market expectations for an increase of 87,000 barrels. 

Meanwhile, Reuters reported yesterday that Saudi Arabia, OPEC’s biggest producer, told other producers that it wanted to extend a coordinated production cut into the second half of this year.

The black gold also finds support from rife geo-political tensions on the Korean peninsula and Syrian political situation. Looking ahead, focus now remains on the official US government figures due to be published by the EIA later today.

WTI technical levels 

A break above $ 53.60 (5-week tops) could yield a test $ 54 (zero figure) beyond which $ 54.44 (Mar 1 high) could be tested. While a breach of $ 52.93(5-DMA) would expose the 52.02 (100-DMA), below which downside opens up for a psychological support at $ 51.50.