WTI jumps above $64 on Al-Falih's comments

• Saudi energy minister suggests an extension to output cuts.
• WTI pierces through the recent consolidation channel. 

Crude oil prices gathered traction in the last hour, pushing the barrel of West Texas Intermediate above the critical $64 handle. The barrel of WTI spiked up to $64.25 with the initial reaction and was last seen trading at $64.05, where it was up 0.8% on the day.

According to a recently published CNBC report, speaking to reporters on the sidelines ahead of an OPEC joint ministerial committee, Saudi Arabia's energy minister Khalid al-Falih said that there was an acceptance that the OPEC deal should extend beyond 2018, adding that they could form a new agreement rather than continuing with the same level of cuts. Al Falih also noted that although they were still anxious about the fragility of the oil market, they were on the right track. 

Later in the day, the API is going to release its weekly crude oil stock report. A larger-than-expected draw in crude oil inventories in the U.S. could fuel another leg up.

Technical levels to consider

$64.90/$65.00 (Jan. 15 high/psychological level) area remains as a stiff resistance ahead of $66 (psychological level) and $66.90 (Dec. 5, 2015, high). On the downside, supports align at $63.05 (Jan. 22 low), $61.80 (Jan. 9 low) and $61 (psychological level).