WTI toying with daily highs above $56.00

Crude oil prices are bouncing off weekly lows at the end of the week, taking the barrel of West Texas Intermediate back to levels above the $56.00 mark.

WTI cautious on OPEC deal extension

Prices of the barrel of WTI, are now reverting a 3-session negative streak after finding quite decent support in the $54.80/85 band, coincident at the same time with the 21-day sma.

In the meantime, prices for the WTI are on their way to close the first week in the red territory after a 5-week’s rally, which saw prices gaining more than 18% since early October’s lows near $49.00 to the vicinity of the $58.00 mark recorded on November 9.

In the meantime, expectations over the likelihood of an extension of the ongoing OPEC production cut deal have diminished somewhat in response to rising doubts expressed by Russia on the matter.

Ahead in the session, driller Baker Hughes will publish its weekly report on US oil rig count (+9 prev).

WTI significant levels

At the moment the barrel of WTI is up 1.52% at $55.98 with the next hurdle at $56.22 (high Nov.17) followed by $57.91 (2017 high Nov.8) and finally $62.58 (2015 high May 6). On the other hand, a breach of $54.85 (21-day sma) would expose $54.54 (38.2% Fibo of $45.58-$57.69) and then $53.75 (low Oct.30).