WTI retraces from highs above $ 50

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  • WTI’s barrel reaches new highs above $ 50.
  • Saudi Arabia said it will cut 1 million bpd over the next two months.
  • Below is the EIA’s weekly report on US crude oil supplies.

US Benchmark Barrel Prices for Light Sweet Crude they tested the levels last seen in February beyond the $ 50 psychological level earlier in the session, only to lose some ground afterwards.

WTI bullish on Saudi news, watch out for EIA

West Texas Intermediate prices have finally cleared the key $ 50 hurdle backed by positive news from Saudi Arabia. In fact, the country said it will reduce its oil production by 1 million bpd over the next two months.

Following the news from Saudi Arabia, and reinforcing the hike, OPEC + will not increase its production (or at least not at the original levels) next month, as concerns about the increase in coronavirus cases and the potential impact on the industry seem to have reappeared. emerged.

Late on Tuesday, the API reported a nearly 1.7 million barrel drop in crude oil supplies from the United States, more than initially estimated. Later on Wednesday, it will be the EIA’s turn to report on crude inventories for the past week.

Technical levels

Right now, a barrel of WTI is shedding 0.29% at $ 49.66 and a breakout of $ 47.20 (Jan 4 monthly low) would expose $ 46.18 (Dec 23 low) before $ 43.94 (Jan 2 monthly low). December). On the positive side, the next obstacle arises at $ 50.57 (January 6 monthly maximum) seconded by $ 54.45 (February 20 monthly maximum) and finally $ 59.61 (January 20, 2020 maximum).

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