WTI eases from 2-week tops, OPEC, non-OPEC cuts in focus

Having rallied 1.5% yesterday, oil futures on NYMEX take a breather and retreat from two-week highs in the Asian trades this Wednesday.

Oil: Focus shifts to API inventory data

Currently WTI trades range bound to lower around $ 53.80, having failed to sustain above $ 54 mark. Oil steadies in today’s trading so far, as cautiousness set into markets once again as we head towards the release of private sector crude stockpiles data from the API, while markets continue to watch out for the first output cut deal agreed between OPEC and non-OPEC producers in fifteen years, which is expected to be implemented as early as this Sunday.

On Tuesday, oil prices staged a solid rally as market turned optimistic in anticipation of tighter oil markets next year in wake of OPEC, non-OPEC cuts. Moreover, thin liquidity condition and irregular volatility exaggerated the upmove in oil.

WTI technical levels

A break above $ 5354.09 (2-week high) could yield a test of Dec 12 high of 54.57. While a breach of support at $53 (zero figure) would expose the Dec 23 low of $52.26.