WTI bid above $52.00 on EIA

Crude oil prices keep the upper limit of the recent range on Wednesday, taking the barrel of the West Texas Intermediate to levels beyond the $52.00 area following the EIA’s weekly report.

WTI extends upside on EIA

Prices of the barrel of the American reference for the sweet light crude oil stayed within the daily range after the EIA reported US crude oil inventories dropped more than expected by 1.846 million barrels during the week ended on September 22.

In addition, weekly distillates stocks dropped by 0.814 million barrels and gasoline inventories went up by 1.107 million barrels vs. a consensus drop of more than 0.920 million barrels.

Additionally, supplies at Cushing increased by 1.181 million barrels.

The ongoing rally in crude oil prices appears to have found strong resistance around the $52.40 area, all amidst Turkish-Kurdistan headlines and rumours over the potential extension of the OPEC agreement to cut the oil output beyond March 2018.

WTI significant levels

At the moment the barrel of WTI is up 0.40% at $52.09 and a break above $52.43 (high Sep.26) would aim for $53.76 (high Apr.12) and finally $55.24 (2017 high Jan.3). On the downside, the next support emerges at $50.81 (23.6% Fibo of $45.58-$52.43) seconded by $50.71 (10-day sma) and then $49.55 (200-day sma).