WTI gives up some gains, but settles above $33.00/bbl

FXStreet (Córdoba) – Crude oil prices rallied on Thursday, propelled by reports suggesting all oil producers might reach a deal to reduce output, although they gave up most of the sharp gains as that was later denied by the OPEC.

Russian Energy Minister, Alexander Novak, said Saudi Arabia proposed a 5% output cut across the board that would include all producers, but the reports were denied by an OPEC delegate soon after.

Brent rose to a high of $35.84 a barrel, and WTI reached a peak of $34.82, but both benchmarks retreated afterwards, ending however, the day with gains. WTI settled up 2.9% at $33.22 a barrel.

WTI technical perspective

“As for WTI futures, the daily chart shows that the price has advanced further above a still bearish 20 SMA, and currently hovers around the 50% retracement of its latest decline, while the technical indicators head strongly higher well above their mid-lines, supporting some additional gains for this Friday”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term and according to the 4 hours chart, the upside is also favored, as the 20 SMA is crossing above the 100 SMA well below the current level, while the technical indicators are losing upward strength near overbought territory, but remain far from suggesting a bearish movement ahead”.

Support levels: 32.40 31.70 31.20. Resistance levels: 33.90 33.80 34.50.

Crude oil prices rallied on Thursday, propelled by reports suggesting all oil producers might reach a deal to reduce output, although they gave up most of the sharp gains as that was later denied by the OPEC.

(Market News Provided by FXstreet)