WTI firm around $48.00, Baker Hughes eyed

Crude oil prices are prolonging its weekly rebound on Friday, now lifting the barrel of West Texas Intermediate to the boundaries of the $48.00 mark.

WTI focus on US data, rig count

Prices of the barrel of the American benchmark for the sweet light crude oil are advancing for the third session in a row so far today against the backdrop of renewed hopes of an extension of the current OPEC/non-OPEC output cut deal beyond the initial June deadline.

In this regard, headlines from the main oil producers are poised to drive the sentiment ahead of the key OPEC meeting due on May 25.

Prices for the WTI have also derived support from the recent decline in US oil supplies, as per this week’s reports by the API (Tuesday) and the EIA (Wednesday), alleviating at the same time some concerns over the supply glut.

Later in the session, driller Baker Hughes will publish its weekly report on US oil rig count (prev. +6). Traders will also look at the US docket, where April’s CPI and Retail Sales are due seconded by the advanced gauge of May’s Consumer Sentiment.

In addition, Chicago Fed C.Evans (voter, centrist) and Dallas Fed P.Harker (voter, hawkish) are due to speak.

WTI levels to consider

At the moment the barrel of WTI is up 0.27% at $47.96 and a break above $48.22 (high May 11) would expose $48.68 (20-day sma) and finally $48.76 (50% Fibo of the April-May drop). On the flip side, the immediate support is located at $46.01 (low May 10) seconded by $45.53 (low May 9) and then $43.76 (2017 low May 5).