WTI reverses Friday’s slide, near $ 54.50

Oil futures on NYMEX stalled its bullish break witnessed in the Asian session, and now consolidates near two-day highs on renewed expectations that the global supply glut is set to ease amid high compliance to the OPEC production cut deal.

Oil staged a solid comeback on Monday and reversed Friday’s losses, as investors confidence remains boosted by OPEC’s record compliance and record high bullish bets on the US oil, as reflected by the US CFTC data published on Friday.

However, gains appear restricted amid persisting worries over rising US oil production, with the US crude stockpiles having rising for a seventh straight week. Next of relevance for the black gold remains the weekly supply reports due out later this week.

Meanwhile, the USD dynamics will be closely paid attention to, in wake of Tuesday’s Trump’s speech before the Congress.

WTI technical levels        

A break above $ 54.99 (7-week highs) could yield a test of $ 55.24 (Jan 3 high). While a breach of support at $ 54 (zero figure) would expose the 20-DMA support of $ 53.52.