WTI flirting with highs in the mid-$50.00s, API eyed

Crude oil prices are extending its upside momentum on Tuesday, now pushing the barrel of West Texas Intermediate to the area of daily highs near $50.50.

WTI focus on API report

Prices for the WTI are advancing for the sixth session in a row today, extending the bounce off multi-month lows in the $47.00 neighbourhood seen in late March and at the same time consolidating the breakout of the critical $50.00 mark.

Crude oil prices remain under pressure nonetheless after driller Baker Hughes reported on Friday another increase in US oil rig count, this time up by 10 to 662 active oil rigs during the week ended on March 31.

Prices keep edging higher despite Libyan oil production showed a rebound while market expectations of an extension of the OPEC deal beyond June stay on the rise and are somewhat lending support to oil prices.

Ahead in the session, the weekly report on US crude oil stockpiles by the API is due (+1.91 mb previous) followed by Wednesday’s DoE report.

WTI levels to consider

At the moment the barrel of WTI is gaining 0.56% at $50.52 facing the immediate hurdle at $50.85 (high Apr.3) followed by $51.88 (55-day sma) and finally $53.80 (high Mar.6). On the downside, a break below $49.77 (20-day sma) would aim for $49.27 (low Mar.27) and then $48.44 (200-day sma).