WTI clings to gains above $58.00 ahead of OPEC+ headlines

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  • WTI remains flat around the $58.00 mark on Friday.
  • OPEC+ officials with give a press conference later in the day.
  • OPEC+ is considering an extra 500K barrels cut for Q1 2020.

Prices of the West Texas Intermediate are hovering around the $58.00 mark per barrel on Friday ahead of the OPEC+ press conference.

WTI waits for confirmation of extra output cuts

The cautious tone is prevailing among traders at the end of the week while OPEC+ officials continue to debate whether to deepen the oil output cuts an extra 500K barrels into the first quarter of the next year. It is worth recalling that the current agreement is expected to run until March 2020.

In the meantime, and apart from the OPEC+ meeting, traders continue to look to the US-China trade front for price direction, while the renewed and increased selling note in the greenback has been also supporting oil prices.

Also supportive of the weekly recovery in oil prices, US crude oil supplies dropped more than expected during last week. Indeed, the API reported a nearly 1.7M barrel drop late on Tuesday, while the EIA said on Wednesday oil inventories went down by almost 4.9M barrels.

WTI significant levels

At the moment the barrel of WTI is gaining 0.04% at $58.30 and faces the initial barrier at $59.07 (monthly high Dec.5) seconded by $60.00 (psychological mark) and finally $60.86 (monthly high Jul.15). On the other hand, a breakdown of $57.50 (200-day SMA) would open the door to $55.86 (100-day SMA) and then $55.31 (monthly low Dec.3).

 

 

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