WTI deflates from tops above $57.00, API on sight

• WTI clinched fresh 2-year tops above the $57.00.
• Broad-based optimism on an extension of the OPEC deal underpins.
• API weekly report next on tap ahead of Wednesday’s EIA report.

Prices of the barrel of the American reference for the sweet light crude oil are now fading the initial test of fresh 2-year tops in the $57.70 area, returning to the $57.00 neighbourhood ahead of the API’s report.

WTI bid on Saudi headlines, looks to EIA

Prices for the WTI keep the rally well and sound for yet another week so far today, managing to surpass the critical $57.00 mark on Monday and earlier today, levels last seen in June 2015. The up move, however, seems to have found sellers near $57.70, prompting the current knee-jerk.

The demand for the black gold remains underpinned by the broad-based optimism over the likeliness of an extension of the current OPEC output cut agreement coupled with positive news signaling the rebalancing of the oil market remains firm.

Furthermore, potential supply disruptions in response to the recent actions from Saudi Crown Prince Mohammad bin Salman have been also lending extra oxygen to the up move.

Looking ahead, the API will publish its weekly report on US crude oil stockpiles ahead of tomorrow’s official report by the DoE.

WTI significant levels

At the moment the barrel of WTI is down 0.33% at $57.16 facing the next hurdle at $57.69 (2017 high Nov.7) seconded by $62.58 (2015 high May 6) and finally $77.83 (high Nov.21 2014). On the flip side, a breach of $55.66 (23.6% Fibo of $45.58-$57.69) would open the door $54.62 (10-day sma) and then $53.75 (low Oct.30).