WTI rises above $50 despite low volume
|Crude oil prices started a technical rise in the NA session, carrying the barrel of West Texas Intermediate above the critical $50 handle. As of writing, the barrel of WTI was trading at $50.15, gaining 0.7% on the day.
After dropping to mid-$49s in the early European session, the barrel of WTI reached its session high at $50.30 in the last hour. However, there were no fundamental triggers behind that move, which suggests that it's a continuation of last Thursday's heavy selloff's, which was caused by the disappointing outcome of the OPEC meeting, technical correction.
The latest data from the Commodity Futures Trading Commission (CFTC) showed that the non-commercial contracts of WTI crude futures rose to 44,037 contracts for the week ended May 23, recording the biggest weekly rise in more than 5 months. The fact that large speculators and hedge funds bought the rumor ahead of the meeting might explain the sharp losses seen after the meeting as they were quick to sell the fact.
Technical levels to consider
The barrel of WTI could face the initial hurdle at $50.50 (daily high/May 19 high) ahead of $51.00 (psychological level) and $52 (may 25 high). To the downside, supports are located at $50 (psychological level), $49.30 (May 19 low) and $48.45 (May 25 low).
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