WTI rallies to test 4hr 20 sma at 52.80

WTI has gained traction and has been on the bid again with a slide in the DXY on the back of the Fed's minutes and continued optimism around OPEC and non OPEC members striking an accord.

WTI has been better bid from around $51.50 to recently scored highs of $52.87 and the recent inventory survey showed a bigger than expected draw in US crude stocks, also supporting demand for the black gold. The price has rallied up to test the 4hr 20 sma at 52.80 and 53.00 is the next psychological barrier ahead of 54.58 recent highs. 

The Fed minutes were the highlight of the day, and although price action was mute on the release, there was a pull back in the DXY while policy makers at the FOMC showed some concerns about possible head-winds and something that was not picked up on by the market in December's meeting. The possible threat that could mean the FOMC are unable to tighten as aggressively as the market is expecting from the dot plot casts doubt over their ability to perform on the proposed hikes and thus takes some steam out of the dollar as it drops back from 14 year highs and supports oil.