WTI clings to gains above $48.00, API eyed

After testing fresh 4-week highs above the $49.00 mark on Tuesday, the West Texas Intermediate has now retreated to the $48.30 region.

WTI attention to API, OPEC

Prices for the WTI keep the optimism intact during the first half of the week against the backdrop of increasing hopes on a deal to limit the oil output at the OPEC  meeting in Vienna later in the month.

Such an agreement should help markets to stabilize, allaying at the same time jitters on the persistent supply glut.

WTI has also benefited from the recent softer tone in the US dollar, which has retreated from last week’s 13-year tops in terms of the US Dollar Index.

Looking ahead, the weekly report on US crude stockpiles by the API is due later in the NA session, while the official DoE report is due tomorrow.

WTI levels to consider

At the moment the barrel of WTI is losing 0.17% at $48.16 with the next support at $47.12 (55-day sma) followed by $45.99 (20-day sma) and finally $42.20 (low Nov.14). On the upside, a breakout of  $49.22 (high Nov.22) would aim for $50.54 (high Jun.22) and then $51.60 (high Oct.10).

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