WTI settles above $50 as DXY remains below 93

Crude oil prices gained traction in the late NA session with the barrel of West Texas Intermediate settling above the $50 mark for the first time since the end of May. As of writing, the barrel of WTI was trading at $50.17, rising 0.9%, or $0.45, on the day.

Although crude oil struggled to find demand during the majority of the day, the greenback weakness was able to provide a boost to the prices. A recent poll conducted by Reuters showed that experts forecast U.S. light crude to average $50.08 a barrel in 2017, down from $51.92 in June's survey. Moreover, OPEC output in July increased by 90,000 barrels per day in July, lifting the total output to its highest level of the year. An ongoing recovery of Libya's production seems to be the main reason behind this monthly surge according to Reuters.

• Oil analysts more bearish as OPEC deal under scrutiny - Reuters Poll
• OPEC oil output jumps to 2017 high on further Libya recovery - Reuters

In the meantime, the US Dollar Index is looking to close the day at its lowest since May of 2016. Following a technical selling pressure triggered by month-end flows, the greenback encountered another selling wave as a late development in the U.S. brought back the concerns about the U.S. politics. According to the New York Times, "U.S. President Donald Trump has decided to remove Anthony Scaramucci from his job as communications director." At the moment, the DXY is at 92.73, losing 0.5% on the day.

• Trump removes Scaramucci as communications director - NYT

The fact that today's upsurge has been a product of the USD fall suggests that the barrel of WTI could come back under pressure when the DXY starts to recover its losses as the increasing oil supply is likely to weigh on crude prices.

Technical outlook

The barrel of WTI could encounter the first hurdle at $51.05 ahead of $52 (May 25 high) and$52.85 (Apr. 18 high). On the downside, supports align at $50 (psychological level), $48.85 (Jul. 28 low) and $47.85 (Jul. 26 low).