Oil futures on NYMEX extends its upside consolidative mode near four-month tops into a third day on Monday, as the bulls await fresh catalysts for the next push higher.
The black gold came under fresh selling pressure, after having run into stiff resistances located near $ 50.70/80 region, as a broadly stronger US dollar overshadows the renewed optimism seen by the major oil producers at their meeting held in Vienna last Friday.
Kuwaiti Oil Minister Essam al-Marzouq, who chaired Friday’s meeting of the Joint Ministerial Monitoring Committee (JMMC), said output curbs were helping cut global crude inventories to the OPEC’s stated target, while adding that market was well on its way towards rebalancing, Reuters reported.
However, the downside remains cushioned, as markets digest the latest upbeat remarks from the UAE’s Energy Minister and OPEC’s Chief Secretary General Barkindo delivered earlier today.
UAE’s EnergyMin: UAE compliance to OPEC output cut deal is at 100%
OPEC’s Barkindo: OPEC will keep pressing forward until reaches goal of stable oil market
Looking ahead, attention now turns towards the US crude supplies reports due later this week for fresh signals. At the time of writing, WTI trades modestly flat at $ 50.59, while Brent gains +0.46% to $ 56.66 levels.
WTI technical levels
To the topside, resistances are aligned at $ 51.00 (round number), followed by $ 52 (week ended May 20 high) and $ 52.50 (psychological levels). Supports are located at $ 50.24 (10-DMA), 49.24 (20-DMA) and 48.91 (200-DMA).
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