WTI in 4-month tops near $50.50, EIA on sight

Crude oil prices are extending the rally on Wednesday, motivating the barrel of West Texas Intermediate to test fresh tops in the mid-$50.00s.

WTI bolstered by Iraq, looks to EIA

Prices of the barrel of the American benchmark for the sweet light crude oil continue to edge higher this week, advancing well above the critical $50.00 mark on a more sustainable fashion.

WTI found extra support after Iraqi oil minister hinted on Tuesday at the likeliness that the OPEC could extend the current output cut deal beyond the original deadline in March 2018, adding to already rising speculations on the subject.

In addition, the American Petroleum Institute reported late on Tuesday a build of 1.4 million barrels during the week ended on September 15, while gasoline inventories decreased by more than 5 million barrels.

In the meantime, WTI is trading in levels last seen in May above $50.50, up for the eighth consecutive day and gaining nearly 11% since August’s lows near $45.50.

Ahead in the session, the EIA will publish its weekly report on crude oil inventories ahead of the FOMC meeting and the oil rig count by Baker Hughes, expected on Friday.

WTI significant levels

At the moment the barrel of WTI is gaining 1.16% at $50.48 facing the immediate hurdle at $52.00 (high May 25) seconded by $53.76 (high Apr.12) and finally $54.94 (high Feb.23). On the other hand, a breach of $49.55 (200-day sma) would aim for $49.25 (10-day sma) and then $49.15 (low Sep.14).