WTI keeps the upside intact, around $51.50

Crude oil prices keep the upbeat sentiment well and sound so far this week, now lifting the barrel of West Texas Intermediate to daily highs in the mid-$51.00s.

WTI in 4-week tops

Prices of the barrel of the American reference for the sweet light crude oil are navigating in multi-week peaks above the $51.00 mark so far today, backed by a steady stance from the greenback following Wednesday’s FOMC minutes.

WTI managed well to leave behind yesterday’s unexpected weekly build in US crude oil inventories (+1.566 million) as reported by the EIA in contrast with forecasts for a more than 0.400 million draw.

Crude oil prices remain underpinned by bets on an extension of the current OPEC output cut deal beyond the initial timeline (H2 2017), although concerns over the supply glut stay everything but abated, proved by increasing US oil production and drilling activity.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.45% at $51.38 facing the immediate hurdle at $51.88 (high Apr.5) followed by $53.80 (high Mar.6) and finally $54.94 (high Feb.23). On the downside, a break below $49.88 (low Apr.4) would aim for $49.03 (20-day sma) and then $48.76 (200-day sma).