Crude oil prices are prolonging its weekly rebound on Thursday, now lifting the West Texas Intermediate to the $48.00 region, or multi-day peaks.
WTI up on output cut deal extension
Prices for the WTI climbed to fresh highs above the $48.00 mark on Thursday following rising hopes of an extension of the OPEC/non-OPEC output cut deal beyond the June deadline, most likely to be decided at the cartel’s meeting on May 25.
Additionally, the demand for the WTI accelerated in response to yesterday’s report by the EIA, showing that US crude oil supplies dropped by more than 5.2 million barrels during the week ended on May 5. The results add to the API’s almost 5.8 million barrels draw reported late on Tuesday.
In the meantime, prices of the barrel of the American reference for the sweet light crude oil gained around 10% since last week’s 2017 lows near $43.70 (Friday) and stay on their way to close the first week with gains after three consecutive pullbacks.
Later in the week, driller Baker Hughes will publish its weekly report on US oil rig count (Friday).
WTI levels to consider
At the moment the barrel of WTI is up 1.16% at $47.88 and a break above $48.76 (50% Fibo of the April-May drop) would aim for $48.94 (20-day sma) and finally $49.39 (200-day sma). On the flip side, the immediate support is located at $46.01 (low May 10) seconded by $45.53 (low May 9) and then $43.76 (2017 low May 5).