WTI moves higher towards 38.2% fibo, eyes $55 target
- WTI is extending the five-day rally and has run up to test the 50-D SMA located at 52.89.
- OPEC December crude oil output fells to a six-month low of 32.43 Mil B/D - Platts survey.
- EIA reports that domestic crude supplies fell by 1.7 million barrels for the week ended Jan. 4.
Following on from yesterday's news that OPEC December crude oil output had dropped to a six-month low of 32.43 Mil B/D, the Energy Information Administration, (EIA), reported earlier today that domestic crude supplies had fallen by 1.7 million barrels for the week ended January 4th. However, gasoline stockpiles had climbed by 8.1 million barrels last week, while distillate stockpiles rose by 10.6 million barrels.
Bulls have been capitalising on oil production cuts this year following 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."
Price is targetting a break of the 50-D SMA located at 52.89 as bulls move through the space between the 38.2% and the 23.6% Fibo of the Oct decline with the ultimate objective being the $55 handle through a cluster of fractals on the $ HR charts and R3 located at 52.60. Both RSI and MACD stay with a bullish bias.