WTI extends rally to fresh 14-month highs above $65

Saudi Arabia decided to prolong voluntary output cut through April.
WTI remains on track to post strong weekly gains.
Goldman Sachs and JP Morgan hiked Brent oil price forecasts.

Eren Sengezer FXStreet

Crude oil prices rose sharply following the 14th OPEC and non-OPEC Ministerial Meeting on Thursday with the barrel of West Texas Intermediate (WTI) gaining nearly 5% on a daily basis. WTI preserved its bullish momentum on Friday and touched its highest level since January 2020 at $65.53. As of writing, WTI was up 2% on the day at $65.33 and was gaining 6.2% on a weekly basis.

OPEC+ output strategy boosts oil prices

OPEC+ producers announced on Thursday that they have decided to keep the oil output unchanged with Saudi Arabia extended its voluntary cut of 1 million barrels per day through April. During the press conference, Saudi Arabia's energy minister Prince Abdulaziz bin Salman adopted a cautious tone and said that the uncertainty around the oil market recovery has not receded yet.

Following this development, Goldman Sachs said it raised its predictions for Brent oil for the second and third quarters by $5 to $75 and $80, respectively. Additionally, JP Morgan announced it hiked the 2022 price forecast to $74. Currently, Brent oil is trading at $68.68, rising 2.4% on the day.

Later in the session, Baker Hughes Energy Services will release its weekly US Rig Count data, which is unlikely to trigger a significant market reaction.

Technical levels to watch for

WTI

Overview
Today last price	65.33
Today Daily Change	1.26
Today Daily Change %	1.97
Today daily open	64.07

Trends
Daily SMA20	60.3
Daily SMA50	55.13
Daily SMA100	49.08
Daily SMA200	44.66

Levels
Previous Daily High	64.72
Previous Daily Low	60.44
Previous Weekly High	63.72
Previous Weekly Low	58.81
Previous Monthly High	63.72
Previous Monthly Low	51.6
Daily Fibonacci 38.2%	63.09
Daily Fibonacci 61.8%	62.08
Daily Pivot Point S1	61.43
Daily Pivot Point S2	58.79
Daily Pivot Point S3	57.14
Daily Pivot Point R1	65.72
Daily Pivot Point R2	67.37
Daily Pivot Point R3	70.01

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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