WTI on a firm note, flirting with $55.00/bbl

• Prices of WTI return to the $55.00 area after Monday’s drop.
• OPEC+ cuts, Venezuela, Iran keep supporting the sentiment.
• API’s weekly report on US crude supplies next on tap.

The barrel of West Texas Intermediate is recovering part of the ground lost at the beginning of the week and is now flirting with the critical barrier at the $55.00 mark.

WTI looks to data

Prices of the barrel of the American benchmark for the sweet light crude oil are attempting to consolidate in the upper bound of the recent range, close to YTD peaks beyond the $55.00 milestone.

As always, the current context of output cuts from the OPEC+ deal coupled with disruptions in main producers and US sanctions appear supportive of a better sentiment in the commodity, although it seems that a stronger catalyst is missing in order to spark further and more sustainable gains for the time being.

Later in the session, the American Petroleum Institute will publish its weekly report on US crude oil stockpiles ahead of the official DoE report expected tomorrow.

What to look for around WTI

Prices of the barrel of WTI have come down after hitting new 2019 peaks beyond the $55.00 mark on Monday. As mentioned, the ongoing OPEC+ agreement in combination with supply disruptions from Venezuela and Libya and the continuation of US sanctions against Iranian exports should remain supportive of higher oil prices. In addition, further progress in the US-China trade talks should also bolster the sentiment in the risk-associated universe and could somewhat allay concerns over a global slowdown, particularly in China.

WTI significant levels

At the moment the barrel of WTI is up 0.19% at $54.80 facing the next hurdle at $55.59 (2019 high Feb.4) seconded by $58.00 (high Nov.18 2018) and finally $58.62 (100-day SMA). On the other hand, a breakdown of $53.58 (10-day SMA) would open the door to $52.80 (21-day SMA) and then $51.13 (low Jan.28).