WTI retakes $53.00 and beyond, API eyed

Crude oil prices have managed to leave behind the initial negative note and are now pushing the West Texas Intermediate above the $53.00 mark per barrel, near daily highs.

WTI looks to API

The increasing selling pressure around the greenback has allowed the WTI to retake the $53.00 barrier and challenge yesterday’s tops in the vicinity of $53.40.

Further support from crude prices came after a poll by Reuters showed over 80% compliance with the recent deal to cut the oil production by OPEC and non-OPEC countries, somewhat offsetting the ongoing pick up in US drilling activity.

The recent increase in US oil rig count, as reported by driller Baker Hughes, prompted fears of a supply glut to re-surface, weighing on sentiment and limiting the upside in prices.

Later in the session, the weekly report on US crude oil supplies by the API is due for release, ahead of tomorrow’s official DoE report on crude inventories.

WTI levels to consider

At the moment the barrel of WTI is gaining 1.06% at $53.19 facing the next hurdle at $53.46 (high Jan.30) followed by $54.08 (high Jan.27) and finally $54.32 (high Jan.6). On the other hand, a break below $52.34 (low Jan.31) would aim for $51.34 (55-day sma) and then $50.91 (low Jan.18).