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WTI clings to gains above $56.00, API eyed

  • WTI posting small gains above the $56.00 mark.
  • Hopes of an extension of the OPEC deal persist.
  • API report on US supplies next on tap.

Prices of the barrel of the American reference for the sweet light crude oil are up marginally on Tuesday, trading in the mid-$56.00s ahead of the weekly report on US crude oil supplies by the API.

WTI cautious ahead of OPEC meeting

Prices of the black gold are reverting Monday’s pullback amidst expectations of an extension of the OPEC production cut deal beyond March 2018. Prices of the WTI should stay within a consolidative range for the time being, as the oil cartel will decide on the matter at its next meeting on November 30.

In the meantime, WTI stays unable to pick up renewed traction as prospects of rising US oil production keep weighing on sentiment and capping occasional bullish attempts. According to its latest report, the IEA expects the US to become the largest producer in the decades to come.

Further news noted driller Baker Hughes reported on Friday US oil rig count stayed unchanged during the week ended on November 17 at 738 US active oil rigs.

Ahead in the week, the API report is due later today ahead of the DoE’sofficial report due tomorrow.

WTI significant levels

At the moment the barrel of WTI is up 0.04% at $56.44 facing the next hurdle at $56.77 (high Nov.20) followed by $57.91 (2017 high Nov.8) and finally $62.58 (2015 high May 6). On the other hand, a breach of $55.58 (low Nov.20) would aim for $55.32 (21-day sma) and then $54.54 (38.2% Fibo of $45.58-$57.69).

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