- The barrel of WTI erases earlier losses and moves back above $51.00.
- WTI briefly dropped to sub-$50.00 levels earlier in the day, fresh YTD lows.
- OPEC+ meeting and output cuts in the limelight.
Prices of the barrel of West Texas Intermediate are returning to the area above the $51.00 mark after briefly dropping and recording fresh 2018 lows in sub-$50.00 levels.
WTI looks to OPEC+ meeting
Prices of the WTI have recovered the smile today following news that Russia is willing to join the rest of oil producers in curbing oil production. The size of the output cuts could be around 1.1M barrels and it is likely to be announced at the cartel’s meeting next 6-7 December in Vienna.
Concerns over rising US production and the slowdown in global crude oil demand have been weighing on traders’ sentiment in past weeks, triggering a massive sell off that saw prices shed more than 30% since October’s 2018 peaks beyond the $77.00 mark per barrel.
Looking ahead, US oil rig count by driller Baker Hughes is due tomorrow, closing the weekly calendar.
WTI significant levels
At the moment the barrel of WTI is gaining 1.65% at $51.02 and a break above $52.41 (high Nov.28) would open the door to $53.14 (21-day SMA) and finally $56.73 (21-day SMA). On the flip side, the next support emerges at $49.34 (2018 low Nov.28) seconded by $48.92 (monthly low Oct.6 2017) and then $45.60 (monthly low Aug.31 2017).
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