WTI picks up pace, near $49.80 ahead of Yellen

Crude oil prices are breaking above the recent sideline pattern today, pushing the West Texas Intermediate towards the vicinity of the key $50.00 per barrel.

WTI firmer, waits for Yellen

The barrel of WTI is now trading closer to YTD peaks in the $50.20 area helped by a now softer tone in the US Dollar and prospects of disruptions in Nigeria following militant attacks over the weekend.

The greenback will remain in centre stage later in the NA session in light of the speech by Chairwoman Janet Yellen on monetary policy. The speech has been gathering extra relevance following the horrible prints from May Payrolls (38K), although prior estimates expect Yellen’s tone to lean towards the hawkish side.

Ahead in the week, the usual API report on stockpiles is due tomorrow, followed by the EIA’s gauge of crude inventories (Wednesday) and the US oil rig count by driller Baker Hughes on Friday.

 WTI levels to consider

At the moment the barrel of WTI is gaining 2.24% at $49.73 with the initial hurdle located at $50.21 (2016 high May 26) followed by $50.92 (high Oct.9 2015) and finally $53.85 (high Jul.10 2015). On the flip side, a breakdown of $46.73 (low May 19) would open the door to $44.08 (55-day sma) and then $43.03 (low May 10).