WTI extend gains above $50 to fresh multi-month highs

Crude oil stretched its rally into a fourth day on Thursday with the barrel of West Texas Intermediate rising to its highest level since late May at $50.50. As of writing, the barrel of WTI was trading at $50.37, adding 2.17%, or $1.07, on the day.

The monthly report released by the International Energy Agency (IEA) on Wednesday showed that the forecast of 2017 global oil demand increased to 1.6 million barrels per day from 1.5 million bpd, fueling the latest leg up. Moreover, Bob Dudley, chief executive officer of BP, on Thursday said that he wasn't expecting a drop nor a spike in oil prices and added that the prices were likely to remain in the range of $50-$60 per barrel.

• BP CEO Dudley: We don't expect drop or spike in oil prices - LiveSquawk

In addition to a stronger demand, which suggests a tightening oil market, OPEC's supply restrictions are providing an additional boost to crude oil. The IEA's report also highlighted that global oil surplus was contracting due to the production declines in OPEC and non-OPEC countries.

Technical levels to consider:

The initial hurdle for the WTI could be seen at $51.05 (May 22 high) ahead of $52 (psychological level/May 25 high) and $52.85 (Apr. 14 high). On the downside, supports align at $50 (psychological level), $49.15 (daily low) and $48.10 (Sep. 13 low).