WTI advances to daily highs above $53.00, API eyed

Crude oil prices are extending the bounce off daily lows, now lifting the West Texas Intermediate to the area of daily peaks above the $53.00 mark per barrel.

WTI now looks to API

Prices for the WTI have recovered some ground lost following a persistent profit taking sentiment in light of the strong gains seen in past session.

It is worth mentioning that the barrel of the American benchmark for the sweet light crude oil has reached the mid-$54.00s on Monday – levels last traded in July 2015 - after the recent deal between non-OPEC producers clinched over the weekend

In fact, OPEC and non-OPEC countries agreed to cut the oil output by nearly 1.6 mbpd starting in January and intended to run during the first half of the next year. The deal aims to tackle the ongoing supply glut and to stabilize the oil market, although its effects on prices remain still surrounded by a lot of scepticism.

Later in the NA session, the API’s weekly report on US crude stockpiles is due, followed by tomorrow’s EIA report along with the critical FOMC meeting, leaving the buck in centre stage.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.59% at $53.14 and a breakout of $54.50 (2016 high Dec.12) would aim for 62.58 (high May 6 2015). On the other hand, the immediate support lines up at $52.59 (low Dec.12) followed by $51.66 (high Dec.9) and finally $49.61 (low Dec.8).