WTI reverts the downside, retakes $51.00 and above

After bottoming out in the $50.80/70 band earlier in the session, the barrel of West Texas Intermediate seems to have found renewed buying interest and has now returned to the $51.40/50 region.

WTI supported near $50.70

Prices for the black gold continue to trim earlier losses as optimism over the re-balancing of the oil market and the likelihood of an extension of the OPEC/non-OPEC output cut deal beyond March 2018 stays on the rise.

Additionally, traders managed to shrug off Thursday’s comments from Chinese officials, noting that markets may be over-optimistic over the Chinese economic growth.

In the same line, another draw in US supplies reported by the DoE on Wednesday added to the prevailing upbeat momentum in prices, which are looking to extend gains for the second straight week.

Ahead in the session, driller Baker Hughes will publish its US oil rig count (prev. -5 to 743 US active oil rigs).

WTI significant levels

At the moment the barrel of WTI is up 0.21% at $51.41 facing the next up barrier at $52.37 (high Oct.16) followed by $52.86 (high Sep.28) and finally $53.76 (high Apr.12). On the flip side, a break below $50.70 (low Oct.20) would open the door to $50.15 (low Oct.12) and then $50.08 (38.2% Fibo of $45.58-$52.86).