WTI oil price stands firm on Thursday and establishes above $50.00 handle, following several unsuccessful attempts above the mark in past four days. Oil price was boosted by comments from Iraq’s oil minister who said OPEC and oil producers outside the cartel are considering extension or even stronger oil supply cut . In addition, mush lower than expected build of crude inventories, showed by API report on Tuesday (build of 1.44 million barrels last week vs forecasted build of 6.18 million barrels) added to support to oil prices. Weekly crude inventories report from EIA is in focus today, with forecasted build of 3.49 million barrels vs 5.88 million barrels build last week, could further boost oil price if today’s release undershoots forecast. Today’s fresh bullish acceleration probes above recent highs at $50.41/48 and hits the highest levels since end of May. Bulls may extend above round-figure barrier at $51.98 on stronger acceleration higher and turn focus towards 25 May peak at $51.98. Repeated daily close above $50 today will be additional bullish signal. Initial support lies at $50, followed by broken 200SMA at $49.56, which should ideally contain corrective dips.
Res: 50.83, 51.00, 51.55, 51.74
Sup: 50.00, 49.56, 49.25, 49.00
