WTI retreats from tops, near $49.00 ahead of API

After climbing to daily highs around $49.30 in early trade, the barrel of West Texas Intermediate has now returned to the $49.00 neighbourhood ahead of key data.

WTI now looks to the API report

Crude oil prices are prolonging the upside for the fourth consecutive session, gaining ground in six out of the last eight days and up more than 14% since fresh 2017 lows near $43.70 to yesterday’s top in the $49.60/70 band.

The upbeat tone in crude oil stays underpinned by rising hopes of an extension of the ongoing OPEC/non-OPEC output cut deal beyond the June timeline and likely to be announced at the next OPEC meeting on May 25.

Earlier in the day, Kuwait officials joined their Saudi and Russian peers in the intentions to extend the agreement to Q1 2018.

In the data space, the API’s weekly report on US crude oil stockpiles is due later ahead of tomorrow’s official report by the DoE and Friday’s oil rig count by driller Baker Hughes.

WTI levels to consider

At the moment the barrel of WTI is up 0.49% at $49.09 and a break above $49.66 (high May 15) would aim for $49.76 (55-day sma) and finally $49.94 (61.8% Fibo of the April-May drop). On the flip side, the immediate support is located at $48.76 (50% Fibo of the April-May drop) seconded by $48.32 (20-day) and then $47.58 (38.2% Fibo of the April-May drop).