WTI appears sidelined around $51.00/bbl ahead of API
- The barrel of WTI remains within a tight range around the $51.00 mark
- USD-buying limits the upside potential so far.
- The API will publish its weekly report on US supplies later in the session.
Prices of the barrel of the West Texas Intermediate are posting decent gains around the $51.00 mark on Tuesday and are at the same time reverting two consecutive daily pullbacks.
WTI looks to data, API
After climbing to fresh YTD peaks beyond the key 53.00 mark per barrel, prices of the American reference for the sweet light crude oil have staged a correction lower in tandem with disappointing data releases in China. The downside, however, seems to have found decent support in the low-$50.00s.
It is worth recalling that crude oil prices are up more than 25% since lows recorded in December 2018 in the $42.20 region. The sharp rebound in prices came on the back of output cuts from the main producers, in line with the November agreement to curb oil production clinched at the OPEC+ meeting.
While traders speculate with the idea that a bull market in crude oil is underway, prices should remain supported by hopes of a US-China trade deal, the above mentioned output cuts and the likelihood of disruptions in both Venezuela and Libya.
WTI significant levels
At the moment the barrel of WTI is up 0.72% at $51.09 and a breakout of $53.01 (55-day SMA) would aim for $53.22 (2019 high Jan.11) and finally $54.48 (high Dec.4). On the downside, the next support lines up at $50.34 (low Jan.14) seconded by $49.71 (10-day SMA) and then 47.94 (21-day SMA).