WTI: A phase of upside consolidation around $ 51 mark
|
After having reached fresh monthly tops at $ 51.25 earlier in Asia, oil futures on NYMEX have entered a phase of consolidation, as the bulls take a breather and gather pace for the next push higher.
The rally in oil regained momentum last week and now extends its bullish run into a fourth day today, as markets cheer reports of the OPEC and non-OPEC producers considering to deepen and extend an OPEC-led supply cut in a bid to prop up prices.
Reuters reported sources, noting that the option of deepening the production cut was also being discussed ahead of a meeting of OPEC and its allies in Vienna on May 25.
Focus now remains on the developments surrounding the US politics, with Comey’s testimony expected to be one of the key events this week, which could impact the USD dynamics, eventually influencing the USD-sensitive oil. More so, the US crude supplies data will be also closely eyed ahead of the OPEC meeting this Thursday.
WTI technical levels
A break above $ 51.50 (psychological levels) could yield a test of $ 52.65 (May 19 high) beyond which $ 53 (round number) could be tested. While a breach of $ 50.36/18 (200 & 5-DMA) would expose $ 49.67 (50-DMA), below which downside opens up for a test of $ 49.19 (10-DMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.