- The WTI pushes higher and approaches $62.00, YTD highs.
- OPEC+ cuts keep felling the up move and sentiment.
- API report on supplies due later today, EIA comes tomorrow.
The rally in crude oil prices remains well and sound today, with prices of the barrel of West Texas Intermediate approaching the key $62.00 mark, recording at the same time fresh YTD tops.
WTI bolstered by OPEC+ deal
Prices of the WTI are up for the fourth consecutive session today, managing to surpass the critical 200-day SMA at $61.59 and faltering just cents away from the key $62.00 mark per barrel.
In fact, the up move in WTI remains propped up by the agreement to curb oil production clinched between OPEC producers and Russia in late 2018 and that kicked in in January.
Also fuelling prices, prospects of further sanctions against Iranian exports have been gathering pace as of late, while the Venezuelan oil industry keeps deteriorating along with persistent massive power outages.
Later in the NA session, the American Petroleum Institute (API) will publish its weekly report on US crude oil supplies ahead of the EIA report due tomorrow and Baker Hughes’ oil rig count on Friday.
What to look for around WTI
WTI has recorded fresh yearly peaks just below the $62.00 mark per barrel earlier today. The current rally stays well underpinned by upbeat sentiment as well as diminishing concerns over a potential slowdown in the demand for crude. In addition, the underlying bullish view in crude oil remains unchanged on the back of the so-called ‘Saudi put’, tight conditions in the US markets (amidst US net imports in historic low levels and the rising activity in refiners ahead of the summer session), and mentioned OPEC+ agreement to curb oil production. In addition, speculators increased their long exposure in oil during the week ended on March 26, taking net longs to the highest level since late October 2018. Further out, the OPEC+ could announce an extension of the current agreement to curb oil production at the cartel’s meeting in June.
WTI significant levels
At the moment the barrel of WTI is gaining 0.46% at $61.83 and a breakout of $61.98 (2019 high Apr.2) would open the door for $63.74 (61.8% Fibo of the October-December drop) and then $68.06 (high Oct.29 2018). On the other hand, the next support is located at $58.51 (21-day SMA) followed by $57.91 (low Mar.25) and finally $55.91 (55-day SMA).
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