WTI upside falters near $54.50

• WTI trading in fresh 8-month tops around $54.50
• Crude prices advanced further on probable extension of OPEC deal.
• Baker Hughes’s US oil rig count up by 1 to 737 active oil rigs.

Crude oil prices have started the trading week on a firm fashion, with the barrel of West Texas Intermediate advancing to fresh tops in the vicinity of $54.50, just to lose some ground soon afterwards.

WTI in multi-month tops

Prices of the barrel of the American reference for the sweet light crude oil move further north on Monday boosted by the broad-based optimism over the likeliness of an extension of the current OPEC/non-OPEC output cut deal beyond the original deadline in March 2018.

The barrel of WTI keeps the buying bias unchanged following comments by OPEC officials and Saudi Arabia Crown Prince in past days, both favouring an extension of the current deal. In the same line, Russian President V.Putin deemed as premature a decision on the subject although he did not rule out such a scenario.

Further news around WTI came from driller Baker Hughes, reporting that US oil rig count went up by 1 during last week to 736 active oil rigs.

On the positioning front, crude oil speculative net longs climbed to 5-week tops in the week to October 24, as per the latest CFTC report.

WTI significant levels

At the moment the barrel of WTI is gaining 0.43% at $54.13 facing the next resistance at $54.45 (high Oct.30) seconded by $54.94 (high Feb.23) and finally $55.24 (2017 high Jan.3). On the flip side, a break below $52.37 (10-day sma) would open the door to $51.55 (low Oct.24) and then $51.45 (21-day sma).