- Prices of WTI approaches the $60.00 mark per barrel.
- OPEC+ output cut, data behind the upbeat mood.
- API report on US crude oil supplies next on tap.
Prices of the barrel of the American benchmark for the sweet light crude oil are extending the optimism at the beginning of the week and are approaching the critical $60.00 milestone, levels last seen in mid-November 2018.
WTI focused on supply data
After testing fresh 2019 highs in the boundaries of $59.60, prices of the barrel of the West Texas Intermediate met some selling pressure and are now hovering over the $59.20 region.
The continuation of the bullish note is bolstered by the ongoing OPEC+ agreement to curb the oil output in collaborating with US sanctions against Iranian and Venezuelan oil exports.
Prices have been also gaining extra ground after recent news cited the OPEC could extend the output cuts further, although this decision would likely come at the June meeting.
Moving forward, the American Petroleum Institute will publish its weekly report on US crude oil supplies ahead of the EIA’s report on Wednesday and Baker Hughes’ oil rig count on Friday.
What to look for around WTI
Crude oil is navigating levels last seen in mid-November 2018 closer to the psychological $60.00 mark per barrel, always bolstered by the persistent selling bias around buck and a generalized better tone in the risk-associated complex. The underlying bullish view in crude oil remains firm, in the meantime, 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), the current OPEC+ agreement to cut oil output and ongoing US sanctions against Iran and Venezuela crude oil exports. However, uncertainty around the US-China trade dispute (as per recent events) remains a threat to this view and could undermine further bullish attempts.
WTI significant levels
At the moment the barrel of WTI is up 0.50% at $59.25 and a breakout of $59.53 (2019 high Mar.19) would aim for $59.63 (50% Fibo of the October-December drop) and finally $61.90 (200-day SMA). On the downside, the next support emerges at $57.67 (low Mar.15) seconded by $56.83 (21-day SMA) and finally $54.37 (low Mar.8).
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