WTI unstoppable around the 66.00 mark, new 2021 highs

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).