WTI rallies 1% to $ 58.70, eyes 2015-tops ahead of OPEC meeting
- Canada’s pipeline shutdown news remain supportive.
- Thin liquidity persists.
WTI (oil futures on NYMEX) extended its winning streak for the fourth straight session and hit fresh more-than-two-year highs of $ 58.70, now consolidating the rally amid the Thanksgiving lull.
WTI: OPEC meeting in focus.
The black gold remains poised to book the third straight weekly rise, as the Canadian pipeline shutdown news continue to keep the buoyant tone intact.
Moreover, oil prices also derive support from the signs of tightening oil markets amid a drawdown in the US crude stockpiles, as reported by both the API and EIA earlier this week.
The US crude inventories fell 1.9 million barrels in the week to Nov. 17, to 457.14 million barrels. Stocks have dropped by 15% from their records in March, to below 2016 levels, as Reuters reports.
Furthermore, increased expectations that the OPEC members will extend the output cut deal beyond March 2018, when the cartel meets in Vienna on Nov. 30, also collaborates to the upbeat momentum seen in the commodity.
Meanwhile, oil traders also find impetus from broad-based USD weakness dollar as well as holiday-thinned trading, which usually helps exaggerate the moves. At the time of writing, WTI rises +0.93% to $ 58.56, while Brent steadies at $ 63.63.
WTI Technical Levels
Higher-side levels: $ 58.70 (multi-month tops), $ 60 (psychological levels), $ 61.82 (June-mid 2015 high)
Lower-side levels: $ 58.20 (daily pivot), 57.57 (5-DMA), 57 (zero figure)