WTI in a tight range below the $51.00 mark

Pablo Piovano FXStreet

The recent rally in crude oil prices seems to have taken a breather on Friday, with the West Texas Intermediate now testing the $50.70 area per barrel.

WTI eases of highs, supported around $50.50

Prices for the WTI have posted the biggest rally since 2009 following the deal at the OPEC meeting on Wednesday.

Members of the oil cartel have agreed to reduce their output by 1.2 mbpd to 32.5 mbpd starting in January and set to run during the first half of the next year. In addition, non-OPEC members will meet OPEC countries on December 9.

After testing fresh highs around $51.80 on Thursday, the barrel of WTI has surrendered part of the strong gains and trades within a narrow range below the $51.00 mark at the time of writing, all amidst a softer note in the US dollar ahead of the critical Non-farm Payrolls (175K exp.).

WTI levels to consider

At the moment the barrel of WTI is retreating 1.12% at $50.49 facing the next support at $49.20 (high Nov.22) followed by $48.98 (low Dec.1) and finally $47.56 (55-day sma). On the flip side, a breakout of $51.80 (high post-OPEC deal Dec.1) would aim for $51.93 (2016 high Oct.19).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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