WTI firmer, upside stalled above $55.00
- WTI finds strong resistance just beyond the $55.00 mark.
- Optimism over an extension of the OPEC deal underpins.
- US oil rig count next on tap.
Crude oil prices are extending the upbeat mood at the end of the week, with the barrel of West Texas Intermediate hovering over the $54.70 region after climbing as high as levels just above the $55.00 mark earlier in the day.
WTI now looks to Baker Hughes
Prices of the barrel of the American benchmark for the sweet light crude oil are prolonging the rally for the fourth consecutive week, gaining nearly 13% since June lows in the $49.00 neighbourhood to tis week’s peaks in the $55.20 area.
Optimism over the rebalancing of the oil market plus rising expectations of a potential extension of the OPEC/non-OPEC output cut deal beyond March 2018 keep sustaining the positive sentiment around crude oil. In this regard, the OPEC might make a decision at the next meeting in late November.
Further out, the latest EIA report (Wednesday) showed another draw in US crude oil inventories, collaborating with the generalized optimism.
Ahead in the session, traders will look to the report on US oil rig count by driller Baker Hughes.
WTI significant levels
At the moment the barrel of WTI is up 0.13% at $54.61 facing the next hurdle at $55.22 (high Nov.1) seconded by $55.24 (2017 high Jan.3) and finally $56.51 (low May 28 2015). On the flip side, a breach of $53.78 (23.6% Fibo of $45.58-$55.22) would open the door $53.51 (10-day sma) and then $52.23 (21-day sma).