WTI bulls testing the key 46 handle

WTI has been trying to recover onto the 46 handle from the lows of 45.53 today, picking up a bid on a risk-on tone following the resolve that Macron has brought to European politics that has embraced markets for the best part of the year so far.

However, it struggles in an environment that is better offered for oil considering the recent comments from major producers last week that suggested the possibility of an extension in crude output cuts beyond this year.

OPEC, non-OPEC producers are considering extending supply cut - Reuters

Saudi Arabia’s oil minister Khalid Al-Falih said today at the Asia Oil and Gas Conference in Kuala Lumpur that he is confident that the output cut deal can be and will be extended into the second half of 2017. He also suggested that this could go into 2018 as well considering that OPEC is discussing the possibility of extending the output curbs until the end of the first quarter of 2018.

The Organization of the Petroleum Exporting Countries will possibly announce these plans at the meeting in Vienna on May 25. This could be an extension to the current agreement by OPEC and some major non-OPEC producers that were to cut output by 1.8 million barrels each day until the end of June. Key levels in oil are 46.20, 47.30, 48.00, 49.00 (1day EMA 200) and 49.20, 20 sma on the 1day.