Oil closing lower in the U.S. but in bullish territory, eyes on $50.00

Oil has lost some ground today in the U.S. session, starting out at $49.42bbls down to $48.74 before returning to $49.31.

WTI has been at the mercy of investors weighing up the idea and impacts of a preliminary deal on output by the Organization of the Petroleum Exporting Countries, (OPEC). We now await the API weekly data where the market is expecting an increase in U.S. crude supplies.

"The OPEC deal that was struck this week will likely cause the 12-month rate of change in energy prices to continue to improve," explained Bert ColijnSenior Economist, Eurozone at ING Bank.

Technically, the price is above August highs while the $50.00 level and levels scored on 29th June this year at $49.97 are still the key target ahead of 28th May at $51.64, a feasible target given the price is well supported above the 100 and 200 weekly smas.