After bottoming out in the mid-$50.00s, the barrel of West Texas Intermediate has now regained the $51.00 neighbourhood ahead of the API’s weekly report.
WTI attention to API
The rally in crude oil prices stays well and sound during the first half of the week, prompting the barrel of the American reference for the sweet light crude oil to clinch its third week with gains and advance to 5-week peaks at the same time.
Prices for the black gold stay firm so far, always backed by increasing expectations of an extension of the ongoing OPEC/non-OPEC output cut deal, likely to be announced at the OPEC meeting on Thursday. According to OPEC delegates, the cartel’s Committee should study 6.9 and 12 month extensions.
In the data space, Markit’s advanced Manufacturing PMI for the current month is next on tap followed by New Home Sales and the speech by Minneapolis Fed N.Kashkari (voter, dovish). In addition, the API’s weekly report on US crude oil stockpiles is also due.
WTI levels to consider
At the moment the barrel of WTI is losing 0.02% at $51.12 and a break below $50.59 (low May 23) would aim for $49.94 (61.8% Fibo of the April-May drop) and finally $49.64 (200-day sma). On the flip side, the next hurdle lines up at $51.40 (76.4% Fibo of the April-May drop) seconded by $52.65 (high Apr.18) and then $53.76 (high Apr. 12).