WTI trims losses, testing highs near $51.30

Crude oil prices have left behind the initial negative sentiment and are now lifting the barrel of West Texas Intermediate to daily highs in the $51.30 region.

WTI boosted by OPEC hopes

Prices of the barrel of the American reference for the sweet light crude oil are reverting three consecutive daily pullbacks so far today, regaining the $51.00 mark and beyond after bottoming out in the $50.00 neighbourhood on Wednesday.

WTI finds support in rising hopes of an extension of the OPEC/non-OPEC deal to cut the oil output beyond June, although Saudi Oil Minister said earlier today that consensus is still absent on the matter.

WTI also stays supported by recent draws in US crude oil stockpiles as reported by the API (Tuesday) and the EIA (Wednesday). However, rising US drilling activity and the prospects of higher US oil production keep buyers wary for the time being.

WTI levels to consider

At the moment the barrel of WTI is up 0.87% at $51.29 and a break above $51.53 (55-day sma) would aim for $51.96 (100-day sma) and finally $52.65 (high Apr.19). On the other hand, the immediate support is located at $50.09 (low Apr.19) followed by $49.88 (low Apr.4) and then $49.02 (200-day sma).