WTI jumps above $50 for the first time in three weeks

Crude oil prices extended the bullish momentum pushing the barrel of West Texas Intermediate above $50 for the first time since March 10. After going as high as $50.45, as of writing the WTI was up 1.7% at $50.35.

Both the API (Tuesday) and the EIA (Wednesday) reports showed that the crude oil supplies increased less than initially estimated, triggering an upsurge. In addition, Libya's output dropped by 20% as the nation's biggest oil field has halted production on Tuesday, adding to the recent bullish momentum.

A recent report by Bloomberg suggested that there's a supply crunch looming as some of the top crude and products traders, who gathered at the FT Commodities Global Summit in Lausanne, Switzerland, suggested that producers cut spending on major projects to focus on short-term low-cost shale output in the U.S.

Crude rebound encourages dip-buyers

Technical outlook

The daily high at $50.45 could act as the immediate resistance for the barrel of WTI followed by $51 (psychological level) and $51.73 (Dec. 2 high). On the downside, a break below $50.00 (psychological level) could aim for $49.60 (Mar. 16 high) and then $47.84 (Mar. 20 low).