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WTI navigates in fresh 2-year tops around $56.00

  • Prices for the WTI climbs above $56.00.
  • Optimism on OPEC deal supporting prices.
  • Headlines from Saudi Arabia also collaborate with the upside.
  • Focus on API, EIA ahead in the week.

The upbeat sentiment around crude oil prices remains well and sound at the beginning of the week, now pushing the West Texas Intermediate to the area of the $56.00 mark per barrel.

WTI in levels last seen in July 2015

Crude oil prices are extending the so far 5-week rally today, breaking above the critical $56.00 mark for the first time since July 2015, always against the backdrop of rising optimism on the likelihood of an extension of the OPEC/non-OPEC output cut deal beyond March 2018.

In addition, recent headlines from Saudi Arabia noted Crown Prince Mohammed bin Salman keeping the firm hand, although the country’s current policy regarding boosting oil prices is seen unchanged for the time being and is also collaborating with the upside momentum in prices.

Also adding to the sentiment, driller Baker Hughes reported on Friday that US oil rig count dropped by 8 to 729 active oil rigs in the week to October 27, recording the fourth decrease in the last 5 weeks.

Ahead in the week, the usual report on US crude oil stockpiles by the API on Tuesday and the EIA on Wednesday will be the salient releases.

 WTI significant levels

At the moment the barrel of WTI is up 0.56% at $55.95 facing the next hurdle at $56.24 (2017 high Nov.6) seconded by $56.51 (low May 28 2015) and finally $62.58 (2015 high May 6). On the flip side, a breach of $54.55 (23.6% Fibo of $45.58-$56.24) would open the door $54.02 (10-day sma) and then $52.59 (21-day sma).

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