WTI flirting with session tops beyond $53.00, API on sight

Prices of the barrel of the American benchmark for the sweet light crude oil are inching higher on Wednesday and are testing new daily highs further north of the $53.00 mark.

WTI now looks to API, EIA

Prices of the West Texas Intermediate are partially reverting yesterday’s moderate pullback to the $51.80 region, managing to regain the $53.00 mark and above despite the better tone in the buck.

Crude oil prices have started the week on a negative note against the backdrop of renewed concerns over a slowdown in China and the projected lower demand in crude oil.

This initial pessimism, however, has been losing momentum as of late as traders shifted their focus to the upcoming weekly reports on US supplies by the API (later today) and the EIA (tomorrow).

What to look for around WTI

The ongoing OPEC+ agreement to curb oil output remains the almost exclusive source of support for prices. In the same line, supply concerns in Libya and Venezuela are set to persist for the time being, while current US sanctions limiting Iranian oil exports and a downtrend in US drilling activity also collaborate with the better sentiment. The only threat to this bullish view comes from rising speculations over the likeliness of a slowdown in the global economy and fears of a supply glut on the back of rising US oil production.

WTI significant levels

At the moment the barrel of WTI is gaining 0.90% at $53.21 and a breakout of $54.22 (2019 high Jan.21) would aim for $54.48 (monthly high Dec.4) and finally $58.00 (high Nov.18 2018). On the flip side, immediate contention aligns at $51.80 (low Jan.22) seconded by $50.34 (low Jan.14) and then $49.56 (21-day SMA).