WTI regains $ 60 mark for the first time in 5 weeks, OPEC meeting eyed

• US-China trade truce, OPEC output cuts extension hopes bump up prices.
• All eyes on OPEC+ meeting in Vienna, US supplies report for next direction.

WTI (futures on Nymex) is seen enjoying a 3% rally and trades near five-week highs of 60.27, having witnessed a bullish opening of $ 2. The black gold went on to build on the overnight jump, as the bulls cheer a double booster shot, with a US-China trade truce on one hand and increased odds of OPEC output cuts extensions until end-2019 on the other hand.

The expectations of the OPEC output cuts extension rose sharply after both Russia and Iran agreed with Saudi Arabia to back the supply cuts by 6 to 9 months to keep the oil markets balanced.

Moreover, the overall market sentiment was lifted by the US-China trade cease-fire, which also added to the upside in the higher yielding oil prices.

Looking ahead, the OPEC cuts expectations are likely to keep the oil prices buoyed, as markets await the outcome of the 2-day OPEC+ meeting on the oil output policy in Vienna, starting this Monday.

Levels to watch