- WTI prices rise to the area above $ 62.00.
- Traders’ attention remains on the OPEC + meeting (ongoing).
- The consensus among investors remains divided on the OPEC + decision.
US benchmark prices for crude Light sweet rose above $ 62.00 a barrel on Thursday.
WTI on multi-day highs, watch out for OPEC +
A barrel of WTI adds to Wednesday’s decent gains amid growing optimism regarding the ongoing OPEC + meeting.
Indeed, traders seem divided on the cartel’s likely decision, as it could carry over current oil production cuts to the following month or increase production a bit (most likely by 500,000 bpd).
The cartel, in its decision-making process, is expected to measure whether the recent spike in crude prices justifies an increase in production in the face of uncertainty facing the industry in the post-pandemic scenario.
Earlier on Wednesday, the EIA reported that US crude oil supplies rose sharply by 21.563 million barrels over the past week (largely due to past freezing weather in Texas). On Tuesday, API also reported a larger-than-expected build-up in crude reserves, this time at 7.356 million barrels.
What to look for around WTI
West Texas Intermediate prices resume higher and retake the $ 62.00 level and above ahead of the OPEC + meeting. Rising inflows into commodity-based ETFs have been underpinning the rally in crude oil alongside falling US crude supplies, icy weather conditions in Texas, and the widespread favorable environment for riskier assets. The latter was based at the same time on the acceleration of the launch of the vaccine in Europe / Asia, adding to the idea of a strong post-pandemic rebound later in the year.
Significant levels
Right now, a barrel of WTI is up 1.92% to $ 62.25 and faces the next hurdle at $ 63.79 (February 25, 2021 high) seconded by $ 65.62 (January 8, 2020 high) and finally $ 66.58. (April 23, 2019 maximum). On the other hand, a breakout of $ 59.27 (March 3 weekly low) would expose $ 58.60 (February 19 low) and then $ 57.43 (February 12 low).
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