WTI turns positive, challenges $57.00
- WTI reverted gains and now targets the $57.00 handle.
- Traders vigilant on Saudi Arabia-Iran headlines.
- Optimism keeps underpinning prices.
Prices of the barrel of the American reference for the sweet light crude oil are trading with moderate gains in the second half of the week, looking to retake the critical $57.00 handle.
WTI looks to OPEC meeting
Prices of the WTI remain in a consolidative mode on Thursday following earlier 2017 peaks just below the critical $58.00 mark recorded yesterday.
The broad-based optimism over the likelihood of an extension of the current OPEC/non-OPEC output cut deal beyond March 2018 plus the ongoing rebalancing of the oil market continue to support crude oil prices.
However, the recent and unexpected build in US crude oil supplies as reported by the EIA, the up tick in US oil production to record levels beyond 9.60 million barrels and the drop in Chinese imports appear to have poured cold water over the strong rally.
On the bullish-side, geopolitical tensions stemming from Saudi Arabia and Iran could spark concerns over potential supply disruptions in the region.
On the data front, driller Baker Hughes will publish its weekly report on US oil rig count tomorrow, while the upcoming OPEC meeting on November 30 should start to pick up relevance.
WTI significant levels
At the moment the barrel of WTI is up 0.25% at $56.95 facing the next hurdle at $57.91 (2017 high Nov.8) seconded by $62.58 (2015 high May 6) and finally $77.83 (high Nov.21 2014). On the flip side, a breach of $56.42 (low Nov.8) would aim for $55.66 (23.6% Fibo of $45.58-$57.69) and then $55.52 (10-day sma).