WTI hits two-week highs to test $41 on Norwegian output knock out

WTI (futures on NYMEX) is consolidating the uptick to two-week highs of $40.87 in the European session this Thursday, as the bulls fight back control amid a better market mood and reports of potential disruption of the Norwegian oil production.

At the press time, the US oil adds 1.30% to trade at $40.62, extending gains into the fourth straight session. The optimism over the US fiscal stimulus keeps the investors’ sentiment underpinned towards the higher-yielding assets such as oil.

Meanwhile, reports from operators and the Norwegian Oil and Gas Association (NOG) cite that the Norwegian labor strike could cut off almost a quarter of the country’s petroleum production by next week.

“Six offshore oil and gas fields shut down on Monday as Lederne ramped up its strike, cutting output capacity by 8%, or around 330,000 barrels of oil equivalent per day (boepd),” Reuters reported.

Ahead of the US open, the bulls take a breather, awaiting fresh cues from the sentiment on Wall Street and on the stimulus talks. Markets seem to have shrugged off the unexpected build in the US crude inventories, as reported by the Energy Information Administration (EIA) a day before.

WTI Technical levels

“During the quote’s break past-$40.95, the $41.00 round-figure and September 18 top close to $41.45 can entertain the oil buyers. On the contrary, a downside break of yesterday’s low of $39.48 can quickly direct WTI sellers toward a horizontal region between $38.70 and $38.80 that comprises multiple technical levels since September 04,” FXStreet’s Analyst Anil Panchal explained.

WTI Additional levels