WTI clings to gains above $45 as markets await OPEC+ decision on output strategy

• WTI is rising for the second straight day on Thursday.
• OPEC+ is reportedly looking to raise oil output by 500K bpd from January.
• Risk flows help WTI stay in the positive territory.

After dropping below $45 earlier in the day, the barrel of West Texas Intermediate turned north and rose to a fresh daily high of $45.65. As of writing, the WTI was trading at $45.57, gaining 1.45% on a daily basis.

Eyes on OPEC headlines

Earlier in the day, the WTI struggled to gain traction amid a lack of progress regarding an agreement on the OPEC and Non-OPEC producers', OPEC+, output strategy in 2021. 

However, the latest headlines pointed out to a compromise and provided a boost to crude oil prices. Citing three sources familiar with the matter, Reuters reported that producers were discussing a rollover of current oil output cuts into January followed by a gradual increase of about 500,000 barrels per day. Additionally, OPEC+ will reportedly review the output strategy on a monthly basis in 2021.

In the meantime, the upbeat market mood, as reflected by modest gains witnessed in Wall Street's main indexes, is helping the risk-sensitive WTI preserve its bullish momentum. Earlier in the session, the S&P 500 Index touched a fresh all-time high of 3,681 and was last seen gaining 0.25% on the day at 3,678.

Technical levels to watch for