WTI upside falters ahead of $62.00 ahead of API

• Crude oil prices tested the 55-day SMA and rebound.
• OPEC reduced its oil output during April.
• API weekly report on US inventories next on tap.

Prices of the West Texas Intermediate are reversing Monday’s losses and are now trading at shouting distance from the key $62.00 mark per barrel.

WTI looks to trade, API

After briefly breaching the key 55-day SMA near $60.80, prices of the WTI sparked a squeeze higher to the boundaries of the $62.00 handle, where it lost some momentum.

WTI is trading on a better mood after the OPEC said its oil production decreased during last month, adding that demand for its crude oil is now seen higher this year.

Also sustaining the up move in crude prices, geopolitical tensions remain on the rise in the Persian Gulf after recent drone attacks on Saudi oil facilities and Sunday’s sabotage of kingdom’s tankers.

Later in the NA session, the American Petroleum Institute will publish its weekly report on US crude oil stockpiles ahead of tomorrow’s official report by the DoE.

What to look for around WTI

Prices of the WTI have met some decent contention around the psychological $60.00 mark per barrel earlier in the month. However, the resurgence of US-China trade concerns and rising geopolitical tensions have been sustaining the rebound in prices. Furthermore, the constructive outlook around crude oil is also underpinned by speculative positioning, the so-called ‘Saudi put’ and the ongoing OPEC+ deal to curb oil output.

WTI significant levels

At the moment the barrel of WTI is gaining 1.23% at $61.56 and a break above $63.28 (high May 13) would open the door for $63.74 (61.8% Fibo of the October-December drop) and then $64.66 (high Apr.30). On the downside, the immediate support emerges at $60.46 (200-day SMA) followed by $59.98 (low May 6) and finally $59.63 (50% Fibo of the October-December drop).