- Prices of the WTI reach new YTD highs beyond $66.00.
- The OPEC+ kept the status quo at its meeting on Thursday.
- US Nonfarm Payrolls surprised to the upside at 379K jobs.
The rally in crude oil prices remain unabated for yet another session, with the WTI advancing to levels beyond the $65.00 mark per barrel, or new 2021 highs, on Friday.
WTI boosted after OPEC+ meeting
Crude oil prices extend the move higher after the OPEC+ surprised traders at its meeting on Thursday. In fact, the cartel announced it will extend the current oil output cuts, with the exception of Russia and Kazakhstan, which were allowed a small increase.
In addition, Saudi Arabia extended its 1mbpd unilateral production cut to at least the end of April (with the idea of making it open-ended eventually).
The expected rebound in the global economy in the second half of the week is seen morphing into higher demand for crude. This in turn is supported by the pick-up in the vaccine rollout and the consequent improvement in the mobility.
Later in the session, driller Baker Hughes will report on the weekly US drilling activity.
What to look for around WTI
Prices of the West Texas Intermediate keep pushing higher and surpass the $65.00 mark per barrel in the wake of the OPEC+ meeting. Increasing inflows into commodity-based ETFs, rumours that a commodity super cycle could be in the offing and rising bets for a strong global recovery (coupled with the ongoing vaccine rollout) have all been supporting the rally in crude oil in past weeks.
Eminent issues on the back boiler: Higher crude oil prices favour US shale growth. Demand-supply balance could prompt a moderate correction lower later in the year.
WTI significant levels
At the moment the barrel of WTI is up 3.11% at $66.01 and faces the next hurdle at $66.58 (2019 high Apr.23) followed by $70.00 (key level) and finally $76.58 (2018 high Oct.3). On the other hand, a breach of $59.27 (weekly low Mar.3) would expose $58.60 (low Feb.19) and then $57.43 (low Feb.12).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.