WTI leaps to $53.30 on weaker USD

Crude oil prices have jumped to session tops on Tuesday, lifting the West Texas Intermediate to fresh daily tops in the $53.30 area.

WTI focus on API

Prices for the WTI are extending yesterday’s moderate gains above the $53.00 mark following a continuation of the offered bias around the US Dollar, as risk aversion sentiment in the global markets seem to have lost momentum.

Traders remain vigilant on the output cut compliance following the OPEC-non OPEC deal to limit the production, being the almost exclusive driver behind the price action for the time being.

Regarding the latter, Saudi Energy Minister said on Monday that the current deal is unlikely to be extended beyond the first half of the year, while OPEC Secretary M.Barkindo sees prices stabilizing this year.

Later in the NA session, the weekly report on US stockpiles by the API is due ahed of tomorrow’s official DoE report.

WTI levels to consider

At the moment the barrel of WTI is gaining 1.45% at $53.13 facing the next up barrier at $53.34 (high Jan.17) followed by $53.50 (high Jan.12) and finally $54.32 (high Jan.6). On the other hand, a break below $50.71 (low Jan.10) would expose $49.95 (low Dec.15) and then $48.88 (100-day sma).