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WTI gains around 2% and moves above the $47.00 mark

  • Prices of the barrel of WTI retake the $47.00 mark and beyond.
  • WTI challenges 2-day tops ahead of API, EIA reports.
  • A drop in Saudi Arabia’s crude oil exports in December lifts preices.

Prices of the barrel of the American reference for the sweet light crude oil managed to revert the initial negative mood and are now up more than 2% to levels above the key $47.00 mark.

WTI looks to API, EIA

Traders managed to leave behind oversupply concerns today and instead jumped on to the optimistic train after Saudi Arabia reported a drop in its exports of crude oil during the last month of 2018.

The extent and sustainability of the current rebound remains to be seen, however, as oversupply concerns remain well in place, particularly in light of rising production in Russia and the US.

Also collaborating with the cautious tone, prospects of a slowdown in the global economy keep weighing on sentiment and have been recently fuelled by soft results from the Chinese manufacturing sector and a significant sell off in equities.

Looking ahead, the American Petroleum Institute will publish its weekly report on US crude oil stockpiles ahead of the EIA’s report and Baker Hughes’ US oil rig count, both due tomorrow.

WTI significant levels

At the moment the barrel of WTI is up 1.21% at $46.73 and a breakout of $47.34 (high Jan.3) would aim for $48.42 (21-day SMA) and finally $53.20 (high Dec.13). On the downside, the next support lines up at $45.45 (10-day SMA) seconded by $44.23 (low Jan.2) and then 42.22 (2018 low Dec.24).

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