WTI off fresh 2019 highs, eyes on oil rig count

Crude oil prices are resuming the upside at the end of the week, taking the barrel of American benchmark WTI to fresh 2019 highs in the $60.50 region.

WTI bid, looks to data

Prices of the barrel of West Texas Intermediate are up for the second session in a row, managing to leave behind the choppy trade seen in the first half of the week as traders re-shifted their attention to tightening supply conditions, particularly on the back of US sanctions against oil producers (and probably Turkey in the near future) and the in-place agreement to curb oil output by the OPEC+.

The barrel of WTI also managed to regain traction after Wednesday’s dip on an unexpected weekly build in US crude oil supplies, as reported by the DoE.

Later in the session, Baker Hughes will report on the US drilling activity during the week ended on March 22.

What to look for around WTI

Crude oil has climbed further north of the critical $60.00 mark per barrel and recorded new 2019 highs. Following the up move, the underlying bullish view in crude oil remains well in place on the back of the so-called ‘Saudi put’, tight conditions in the US markets (amidst US net imports in historic low levels and the rising activity in refiners ahead of the summer session), the current OPEC+ agreement to cut oil output and ongoing US sanctions against Iranian and Venezuelan crude oil exports. In addition, speculative longs continue to flow into the markets, reversing the downside that prevailed in late 2018. Further out, the OPEC+ could announce an extension of the current agreement to curb oil production at the cartel’s meeting in June.

WTI significant levels

At the moment the barrel of WTI is gaining 0.72% at $59.69 and a breakout of $60.49 (2019 high Mar.29) would open the door for $61.64 (200-day SMA) and then $63.74 (61.8% Fibo of the October-December drop). On the other hand, the next support is located at $57.91 (low Mar.25) seconded by $55.53 (55-day SMA) and finally $54.37 (low Mar.8).