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WTI jumps to fresh 3-month highs above $ 50

FXStreet (Mumbai) - WTI oil extends the previous rally and shot higher to fresh three-month highs on Friday, as the upbeat comments from OPEC’s head continue to underpin prices.

WTI sees a $1 rise

Currently, WTI rallies 2% to 50.41, retreating from fresh multi-month highs reached at 50.58 some in last hours. Oil prices found renewed strength from comments from the OPEC head on Thursday and also from reports that the demand for the black gold is picking-up gradually.

On Thursday, OPEC Secretary General El-Badri said in a statement to the IMF, "World oil demand is estimated to increase by 1.5 million barrels per day in 2015, higher than the initial projection.” While, “In 2016, improvement in global economic activities is anticipated to support world oil demand to grow by 1.3 million barrels per day."

Moreover, broad based US dollar weakness triggered by the Fed minutes also boosts the oil prices. A weaker US currency makes dollar-denominated assets cheaper in other currencies and so more attractive. The US dollar index inched down 0.09% to 95.33.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 50.71 (July 22 High) levels above which gains could be extended to 51 (round number) levels. Meanwhile, support is seen 49.53 (Today’s Low) levels from here losses could be extended to 47.76 (Oct 8 Low).

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