- Saudi comments & weaker DXY support.
- Will it hold the $ 61 figure?
WTI (oil futures on NYMEX) stalled its solid rebound from near multi-week troughs in Europe, as the bulls took a breather after the recent upsurge, fuelled by bullish Saudi comments. The Saudi Arabian Energy Minister Al-Falih said on Wednesday that he was confident on the OPEC output cuts deal compliance.
Meanwhile, the USD-sensitive oil also remains underpinned by broad-based USD selling, in the wake of looming uncertainty over three or four Fed rate hikes and Trump’s fiscal plans.
The barrel of WTI appears to have shrugged-off the bearish EIA weekly crude supplies report, which showed that the US crude inventories climbed by 1.8 million barrels in the week to Feb. 9 while the country’s oil output levels rose to a record 10.27 million barrels per day (bpd), more than that of the OPEC’s top producer Saudi Arabia.
Attention now turns towards Friday’s US drilling sector activity report for the next direction on the prices.
WTI Technical Levels
At $ 61.15, supports are located at $ 60.94 (10-DMA), $60.50 (psychological levels) and $60.27 (Feb 8 low). On the upside, the resistances are aligned at $61.55 (5-day tops) ahead of $62 (round figure) and $62.22 (50-DMA).
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