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  • Prices of the barrel of WTI are inching higher beyond $58.00.
  • OPEC+ will decide on June on an extension of output cuts.
  • US oil rig count dropped by 1 last week.

Prices of the barrel of the West Texas Intermediate are inching higher at the beginning of the week, trading at shouting distance from YTD peaks just below the $59.00 mark.

WTI supported by OPEC+ headlines, supplies

Prices of the WTI have moved closer to the $59.00 mark per barrel in recent sessions on the back of the ongoing turmoil in Venezuela and positive reports from US supplies and drilling activity.

In fact, the EIA reported last Wednesday US crude oil supplies dropped more than expected during the previous week along with a downtick in oil output, while driller Baker Hughes said the US active oil rigs decreased for yet another week on Friday.

Also sustaining the better mood in prices, OPEC+ officials said the cartel could announce an extension of the ongoing output cut agreement at the June meeting.

What to look for around WTI

Crude oil is navigating levels last seen in mid-November 2018 further north of the $58.00 mark per barrel, always bolstered by a softer 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 0.48% at $58.62 and a breakout of $58.86 (2019 high Mar.15) would aim for $59.63 (50% Fibo of the October-December drop) and finally $61.93 (200-day SMA). On the downside, the next support emerges at $57.67 (low Mar.15) seconded by $57.14 (10-day SMA) and finally $54.37 (low Mar.8).