WTI takes-out $ 55, strongest since January
- Rallies on upbeat fundamentals
- Will it sustain above $ 55 mark?
- EIA crude inventory data eyed
WTI (oil futures on NYMEX) set-off a new month on a bullish note, extending October’s 5% gain, as the bulls cheer bullish API report and improved OPEC output cut compliance.
WTI regains $ 55, what next?
The black gold extended its winning streak into a fifth day today and printed fresh ten-month tops at $ 55.22, despite upbeat tone seen around the greenback against its major rivals, as bullish fundamentals continue to remain supportive of the ongoing oil-price rally.
The latest oil market data showed that the OPEC’s October output dropped by 80k bpd, reflecting the OPEC output cut deal compliance at 92% versus 86% adherence seen in September.
Moreover, the latest reports of Saudi Arabia, the world’s top oil exporter, planning a hike in December crude prices for customers in Asia to levels last seen in 2013 or 2014, added to the upside in the commodity.
Furthermore, the sentiment around oil also remains underpinned by the API crude supplies report released late-Tuesday, which showed a bigger-than-expected decline in the US crude and gasoline stockpiles for last week.
Markets now await the official US Government inventory data due to be released by the EIA later in the NA session for fresh insights on the US supply-side scenario. At the time of writing, WTI rallies +1.20% to $ 55.05, while Brent jumps 1% to $ 61.55, refreshing two-year tops.
WTI Technical Levels
Higher-side levels: 55.24 (Jan highs), $ 55.50 (psychological levels), $ 56.00 (round number)
Lower-side levels: 54.43 (daily pivot), 54.28 (5-DMA), 53.94 (Oct 31 low)