WTI stabilizes below $ 55.50 on hopes of OPEC cuts extension
- Will its hold 55 handle?
- Rising US output and stockpiles weigh.
- Eyes US tax vote for USD-driven flows.
WTI (oil futures on NYMEX) is on a steady recovery mode so far this Thursday, making another attempt to regain $ 55.50 mark, as the bears take a breather after the recent sell-off.
WTI finds support just below 55 handle
The black gold extends its downside consolidative mode into Europe, as expectations of the OPEC output cut deal extension beyond March 2018 continue to outweigh the reports of risings US output and storage levels.
Oil prices also derive support from persisting risk-on market profile reflected by higher European equities and Treasury yields, which helps underpin the sentiment around the risk asset oil.
However, the further recovery appears capped, as the bearish EIA crude inventory report continues to weigh on the investors' mind. The US crude stockpiles rose for a second week in a row, building by 1.9-million barrels in the week to November 10 to 459-million barrels, the EIA data showed on Wednesday.
Focus now remains on the US tax vote due later today, which is likely to have a significant impact on the USD-sensitive oil. At the time of writing, WTI trades -0.20% lower at $ 55.22, while Brent steadies just ahead of $ 62 mark.
WTI Technical Levels
Higher-side levels: 55.50/55 (psychological levels/ NY high), $ 56 (round figure), $ 56.75 (Nov 14 high).
Lower-side levels: 54.84 (2-week lows), 54.40 (Nov 3 low), 53.89 (Nov 1 low).