WTI advancing to daily highs near $50.90

Crude oil prices are recovering part of yesterday’s deep pullback, now lifting the West Texas Intermediate to the boundaries of the $51.00 mark per barrel.

WTI focus on data, USD

After reaching fresh yearly highs in levels just below the $52.00 handle on Thursday, the barrel of WTI triggered a leg lower in response to a strong rebound in the demand for the greenback post-ECB meeting.

However, prices for the black gold seem to have found quite decent support near $50.20, sparking the ongoing recovery.

It is worth noting that crude oil prices have been underpinned by recent decrease in inventories, as reported by the API (Tuesday) and EIA (Wednesday), while scepticism around the confirmation of a deal on an output freeze at the OPEC meeting in Vienna seems to be have been somewhat mitigated.

Later in the NA session, FOMC’s D.Tarullo (permanent voter, hawkish) and San Francisco Fed J.Williams (2018 voter, neutral) are due to speak ahead of the report by Baker Hughes on US drilling activity.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.45% at $50.86 facing the next up move 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 $49.15 (low Oct.10) would expose $49.85 (20-day sma) and finally $47.16 (55-day sma).