WTI Oil extends recovery on further output cut from Saudi Arabia
WTI oil price broke above $57 per barrel on Tuesday in extension of recovery from $54.51 spike low (8 May), driven by improved sentiment on decision of Saudi Arabia to voluntary cut its supply further and to keep output below 10 million bpd in April.
Reduced production from Venezuela adds to positive signals for oil price.
Attempts from Saudi Arabia to tighten oil market and push oil price towards levels that main oil producers look for, keep the price supported.
Fresh advance focuses 2019 highs ($57.79/85) break of which would prompt continuation of larger recovery phase from $42.36 (2018 low) towards $58.38 (100WMA and $59.62 (50% of $76.88/$42.36 fall).
Release of weekly crude stocks reports (API today and EIA on Wednesday) will be closely watched after last week’s strong and unexpected build in inventories shook oil prices.
Broken 20 SMA (56.27) marks solid support which is expected to keep the downside protected and maintain bullish bias.
Res: 57.85; 58.38; 59.62; 60.00
Sup: 57.00; 56.73; 56.52; 56.27