WTI jumps 2.50% to take out $ 54, API data eyed

OPEC headlines, heavy USD selling bolsters the Oil-price rebound
Focus on the US API fuel stocks, Dec 6^th OPEC+ Vienna meeting for further direction.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) extends its recovery from multi-month lows into a third day today and breaks through the 54 barrier to reach the highest level since November 23^rd.

The renewed upside in the black gold can be mainly attributed to the latest OPEC headlines that cited the OPEC is said to be working towards output cut of at least 1.3 million bpd while markets continue to price in the OPEC output cuts heading into the Dec 6^th OPEC + meeting in Vienna.

Meanwhile, broad-based US dollar weakness amid tumbling US Treasury yields keep the buoyant tone intact around the USD-sensitive oil. The US dollar index drops to eight-day lows of 96.38, down 0.60% on the day.

Further, the US-China trade truce combined with a mandated reduction in the Canadian oil supply add to the recovery mode seen in the barrel of WTI. Recall that Alberta province will force producers to cut output by 8.7%, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage.

Markets now look forward to the US API weekly crude stockpiles data due at 2130 GMT for near-term trading opportunities.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 54.22
    Today Daily change: 1.0e+2 pips
    Today Daily change %: 1.88%
    Today Daily Open: 53.22
Trends:
    Previous Daily SMA20: 54.2
    Previous Daily SMA50: 62.28
    Previous Daily SMA100: 65.92
    Previous Daily SMA200: 67.45
Levels:
    Previous Daily High: 53.37
    Previous Daily Low: 53.03
    Previous Weekly High: 52.13
    Previous Weekly Low: 49.64
    Previous Monthly High: 63.92
    Previous Monthly Low: 49.64
    Previous Daily Fibonacci 38.2%: 53.24
    Previous Daily Fibonacci 61.8%: 53.16
    Previous Daily Pivot Point S1: 53.04
    Previous Daily Pivot Point S2: 52.87
    Previous Daily Pivot Point S3: 52.7
    Previous Daily Pivot Point R1: 53.38
    Previous Daily Pivot Point R2: 53.55
    Previous Daily Pivot Point R3: 53.72

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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