WTI extends the recovery towards $ 57 mark
- Unperturbed by the DXY recovery.
- Rising US output outweighs OPEC cuts.
- Eyes on US supplies report and OPEC meeting for fresh direction.
WTI (oil futures on NYMEX) continues to move back and forth in a tight range, now catching a fresh bid tone on increased expectations that the OPEC cuts extension will be announced at the OPEC meeting scheduled next week.
WTI takes-out stiff barrier near $ 56.70
The black gold regained poised over the last hour, as the bulls gathered pace to rise above $ 56.70/75 resistances, despite a broad-based US dollar recovery. A stronger US dollar makes the USD-denominated oil more expensive for the holders in foreign currencies and vice-versa.
Moreover, oil prices also remain underpinned amid hopes that the OPEC will agree to extend cuts beyond March 2018 when it meets next week in Vienna on Nov. 30 to discuss the outlook for the policy.
Also, the latest comments by the UAE Energy Minister Al Mazrouei, advocating the need for output cuts extension, lifted the sentiment around the commodity. UAE OilMin: It’s logical to extend OPEC oil-output cuts accord
In the week ahead, it remains to be seen if oil prices manage to sustain its upbeat momentum ahead of the US crude stockpiles data and drilling activity report. At the time of writing, WTI jumps +0.65% to $ 56.73, while Brent rises +0.42% to $ 62.66.
WTI Technical Levels
Higher-side levels: $ 57 (round figure), $ 57.50 (psychological levels), $ 57.92 (2-1/2 year tops)
Lower-side levels: $ 55.58 (Nov 20 low), 54.84 (2-week lows), 54.40 (Nov 3 low)