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  • Crude oil rises further as OPEC and non-OPEC output pact likely to continue.
  • WTI is up more than 2%, trimming last week losses.

Crude oil prices jumped and extended gains following reports that suggested that   Saudi Arabia, other OPEC states, and non-OPEC producers will continue to cooperate until the end of 2018. Also, it was mentioned that any adjustment in global output will be gradual.

Stabilization and correction

WTI (oil futures on NYMEX) was trading modestly higher, showing signals of stabilization for the third-day in-a-row after last week slide of more than 8%. Following OPEC related headlines broke above $66.30 a barrel and jumped to $68.20 reaching the highest level since last Friday. Previously, the better tone around financial market following yesterdays decline and a weaker US Dollar, offered support to commodity prices.

As of writing, it was hovering around $68.00, up 2.10% for the day but still more than 5% below the level it had a week ago.

WTI Short-term Levels

To the downside, support levels might be seen at $68.00, $67.30 (May 29 high) and $66.00. On the upside, immediate resistance is located at $68.20 (May 30 high), followed by $68.65 and $69.55.