WTI advances above $58 on hopes of further output cuts

• Iraqi Oil Minister says they will lower ouptput to comply with OPEC agreement.
• Saudi Arabia’s new Energy Minister voices support for further supply cuts.
• Coming up: API’s weekly crude oil inventory report.

Crude oil preserved its bullish momentum and extending its rally into a fifth straight trading day with the barrel of West Texas Intermediate rising to its highest level since late July at $58.74. As of writing, the WTI was trading at $58.25, adding 0.4% on a daily basis.

Output cut expectations lift WTI higher this week

On Monday, Saudi Arabia’s new Energy Minister  Prince Abdulaziz bin Salman said that Saudi Arabia’s policy with regard to oil output cuts will not change during this term and added that he was expecting the OPEC+ alliance to remain in place for the long-term.

Today,  Iraqi Oil Minister Thamer Ghadhban told CNBC that they will reduce the oil production to comply with the OPEC agreement and explained that  starting this month, they will lower the output down to  80,000 –  85,000 barrels per day from 205,000 to provide an additional boost to crude oil prices.

Later in the day,  OPEC Secretary-General Mohammad Barkindo said that they have been “very conservative” with demand forecasts so far to ease concerns over a dismal energy demand outlook and supported today’s rally.

Toward the end of the American session today, the American Petroleum Institue (API) will release the weekly crude oil stock report.

Technical levels to watch for