WTI pushes higher, around $51.30

The rally in crude oil prices stays everything but abated at the beginning of the week, with the barrel of West Texas Intermediate up over 1% to the $51.30/40 region.

WTI firmer on OPEC, USD

Prices for the WTI have intensified the upside amidst a continuation of the sell off around the greenback, which has plummeted to fresh 2017 lows when tracked by the US Dollar Index.

Further support for crude prices came from rising hopes on an extension of the OPEC/non-OPEC output cut deal, most likely to be announced at the OPEC meeting on May 25.

Adding to the upbeat sentiment, crude oil supplies in the US have been decreasing as of late, as seen in weekly reports by the API and the EIA.

Traders have so far managed to leave behind concerns over the US supply glut, despite another report from driller Baker Hughes showed on Friday another increase in oil rig count, this time by 8 to 712 active rigs.

WTI levels to consider

At the moment the barrel of WTI is gaining 1.18% at $51.27 and a break above $51.42 (high May 22) would aim for $52.65 (high Apr.19) and finally $53.76 (high Apr.12). On the flip side, the next support lines up at $49.94 (61.8% Fibo of the April-May drop) seconded by $49.62 (200-day sma) and then $48.76 (50% Fibo of the April-May drop).