WTI enroute for a test above the 23.6% Fibo of Oct decline
- WTI is testing the vicinity of the $50 handle as bullish sentiment builds from both a technical and fundamental standpoint.
- OPEC December crude oil output falls to a six-month low of 32.43 Mil B/D - Platts survey.
West Texas Intermediate crude has been recovering from a low of $42.67 and eyes a break of the 23.6% Fibo ahead of the $51 handle. Bulls are capitalising on oil production cuts with the latest data showing that the Organization of the Petroleum Exporting Countries has fallen by 630,000 barrels a day to a six-month low of 32.43 million barrels in December from a month earlier. This was according to an S&P Global Platts survey released Tuesday.
"Stripping out Qatar, which exited OPEC at the end of the month, and Iran, Libya and Venezuela, which were granted exemption from the latest round of cuts, the remaining 11 members pumped 26.89 million b/d-almost 1 million b/d above their collective ceiling of 25.94 million b/d, which went into effect January 1,"
the survey highlighted.
- Support levels: 48.26 47.50 46.62
- Resistance levels: 50.78 51.54 54.50
Price continues to correct higher beyond the recent trend line resistance and the 21-D SMA and targets a test of the 50-4HR SMA. The 23.6% Fibo of the Oct decline is now up for grabs just ahead with the ultimate objective being the $55 handle through a cluster of fractals and the 38.2% Fibo (Oct decline). Both RSI and MACD lean with a bullish bias.