WTI leaps above $49.00 on OPEC rumours
Crude oil prices have reverted the initial bearish note at the beginning of the week, with the barrel of West Texas Intermediate now bouncing off the $49.00 mark following the usual OPEC-jawboning.
WTI weaker on rig count, China, up on OPEC chatter
Prices for the WTI stays under pressure amidst rising speculations of a potential extension of the OPEC/non-OPEC output cut deal beyond the original timeline (June). Latest news cited OPEC and non-OPEC producer could be considering extending the current agreement for 9 months or more.
However, concerns are everything but abated following recent trade data from China, adding to the probable slowdown in the demand for oil from the Asian giant.
In the same line, driller Baker Hughes has reported on Friday its 16th straight raise in US oil rig count, this time by 6 and taking US active oil rigs to 703 during the week ended on April 28.
From the speculative front, crude oil net longs have dropped to the lowest level since late November, as per the latest CFTC report for the week ended on May 2.
WTI levels to consider
At the moment the barrel of WTI is up 0.02% at $46.23 facing the next barrier at $46.98 (high May 8) seconded by $47.58 (38.2% Fibo of the April-May drop) and finally $49.28 (200-day sma). On the other hand, a breach of $45.29 (low May 4) would expose $43.76 (2017 low May 5) and then $42.20 (low nov.14 2016).
