WTI eases from tops, stays firm above $50.00

Crude oil prices are extending the recovery in the first half of the week, lifting the barrel of the West Texas Intermediate back above the $50.00 mark.

WTI higher on OPEC, Saudi news

Prices of the WTI remain buoyant above the $50.00 handle after Saudi Arabia cut its crude exports for the month of November, in agreement with the OPEC output cut deal.

In addition, OPEC officials noted earlier that the rebalancing of the market remains on track, somewhat reverting several years of oversupply.

Further out, market chatter regarding the likelihood of an extension of the output cut agreement beyond March 2018 keeps underpinning the upbeat momentum in WTI, while some refineries are still close following the recent pass of the hurricane Nate, all lending extra legs to the up move in prices.

Ahead in the week, the API will publish its report on US crude oil supplies on Wednesday, followed by the EIA’s weekly report on inventories and Friday’s oil rig count by driller Baker Hughes.

WTI significant levels

At the moment the barrel of WTI is gaining 1.17% at $50.16 facing the next resistance at $50.41 (21-day sma) followed by $50.62 (10-day sma) and finally $51.22 (high Oct.5). On the flip side, a break below $49.41 (200-day sma) would aim for $49.22 (50% Fibo of $45.58-$52.86) and then $49.07 (55-day sma).