WTI testing highs near $48.80 ahead of EIA

Crude oil prices are extending the weekly advance today, pushing the barrel of West Texas Intermediate near the $48.80 region, or daily highs.

WTI now focus on EIA

Prices of American reference for the sweet light crude oil are extending the leg higher this week, trading in the proximity of the $49.00 handle amidst unconfirmed rumours of a potential extension of the current OPEC output cut deal.

Collaborating with the upside, the recent OPEC monthly report is now more optimistic on the demand for the crude oil for this year and the next, while the IEA is also expect the demand for crude to increase in the next two years.

Further news regarding the black gold, the API reported late Tuesday an increase of 6.182 million barrels during the week ended on September 8, up from the previous week’s build of nearly 2.8 million barrels.

Later in the session, the official report on US crude oil supplies is due ahead of Friday’s US oil rig count by driller Baker Hughes.

WTI significant levels

At the moment the barrel of WTI is gaining 1.04% at $48.73 facing the immediate hurdle at $49.42 (high Sep.6) followed by $49.59 (200-day sma) and finally $50.22 (high Aug.10). On the other hand, a breach of $48.58 (61.8% Fibo of the August drop) would aim for $48.14 (10-day sma) and then $47.69 (21-day sma).