WTI below $51.00 ahead of API

Crude oil prices are recovering from Monday’s drop so far, now lifting the West Texas Intermediate to the vicinity of the $51.00 mark per barrel during the European morning.

WTI focus on API

Choppy start of the week for crude oil prices so far, coming down from last week’s fresh 2016 tops in levels just shy of the $52.00 mark although finding some decent support around Monday’s lows in the $49.60 area.

Prices for the black gold remain supported by speculations on a probable deal between oil producers over an output freeze, likely to be confirmed at the OPEC meeting in Vienna due next month.

Later in the session, the weekly report on US crude stockpiles by the API is due ahead of tomorrow’s report by the DoE and Friday’s report by Baker Hughes on the US drilling activity.

Apart from expectations of an output freeze, speculative positioning is also sustaining the upbeat momentum around crude oil prices, with net longs still in the highest levels since the summer 2014. Back to the day, the WTI was around 100.00 per barrel.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.55% at $50.80 with the next hurdle at $51.93 (2016 high Oct.19) followed by $53.89 (high Jul.10 2015) and then $62.58 (high May 6 2015). On the other hand, a breakdown of $49.16 (low Oct.9) would open the door to $47.30 (55-day sma) and finally $45.10 (200-day sma).