WTI sits at 7-month tops amid hopes of OPEC cuts extension

• Will it sustain above $ 54 threshold?

• Saudi Arabia’s Crown Prince comments underpin.
• Upbeat US CFTC positioning data.

WTI (oil futures on NYMEX) regains poise heading towards the European opening bells, taking the rates back above $ 54 mark, as markets remain optimistic over the extension of the OPEC output cut deal.

WTI: $ 55 on sight

The black gold is back on the bids, looking to extend its recent winning streak into a third day today, as last week’s comments from the Saudi Crown Prince continue to underpin the sentiment around the oil markets. The Saudi Crown Prince advocated the case for OPEC oil cut deal extension into 2018.

Moreover, the renewed weakness seen in the US dollar against its major competitors amid increased speculation that Trump will select Powell as the next Fed Chair, also keeps the USD-sensitive oil supported.  

Also, with Brent crude oil futures sitting above $ 60, the highest levels in more than 2 years, against its American counterpart continues to keep the bullish momentum intact.

Meanwhile, evidence of increasing confidence in oil, the US CFTC data reflected that the hedge funds and other money managers raised their bullish wagers on US crude futures and options in the week to October 24.

Focus now shifts towards the US weekly crude supplies reports and FOMC policy decision for fresh impetus in the week ahead. At the time of writing, WTI rises 0.23% to $ 54.05, while Brent trades 0.15% higher at $ 60.20 levels.

WTI Technical Levels

Higher-side levels: 54.20 (7-month high), $54.44 (March highs), $ 54.94/55 (Feb highs/ round number)

Lower-side levels: 53.34 (5-DMA), 52.59 (10-DMA), 51.84 (20-DMA)