Crude oil prices are advancing further at the beginning of the week, now pushing the West Texas Intermediate further north of the $49.00 mark per barrel.
WTI up on OPEC rumours
Prices for the WTI are prolonging the recent bullish note after Saudi Arabia and Russian oil ministers advocated earlier in the European morning for an extension of the current OPEC/non-OPEC output cut agreement to Q1 2018. The final decision, however, will come at the next OPEC meeting on May 25.
Crude oil prices have also derived support from the recent draw in US crude oil inventories as per the latest reports by the API and the EIA.
In addition, traders have managed to leave behind another increase in US oil rig count, this time by 9 according to the latest report by driller Baker Hughes, with active oil rigs now at 712 during the week ended on May 5.
On the positioning front, crude oil net longs have dropped to the lowest level since late November in the week to May 9, according to the latest CFTC report.
WTI levels to consider
At the moment the barrel of WTI is up 3.03% at $49.27 and a break above $49.45 (200-day sma) would expose $49.94 (61.8% Fibo of the April-May drop) and finally $51.31 (100-day sma). On the flip side, the immediate support is located at $47.58 (38.2% Fibo of the April-May drop) seconded by $47.35 (low May 12) and then $46.12 (23.6% Fibo of the April-May drop).