WTI finds support near $62.80 ahead of API

• Prices of the West Texas Intermediate regain the $63.0 mark and above.
• Rising hopes of an extension of the OPEC/non-OPEC deal bolster prices.
• Later in the session, the API will publish its report on inventories.

Prices of the barrel of the American reference for the sweet light crude oil are posting moderate gains on Tuesday, staging a decent rebound from lows in the $62.80 region.

WTI looks to API

Prices of the West Texas Intermediate have regained the $63.00 mark per barrel today and at the same time are attempting to stabilize in the lower end of the weekly range, as traders continue to adjust to the recent decline in US drilling activity, as shown by the latest report from Baker Hughes.

In the meantime, WTI is down for the second consecutive week despite rising rumours of a potential extension of the OPEC/non-OPEC output cut deal into 2019. In this regard, Russia’s A.Novak considered premature those speculations and pointed to a final word at some point by year-end.

Looking ahead, the API will publish its weekly report on US crude supplies later today ahead of the EIA’s report due tomorrow.

WTI significant levels

At the moment the barrel of WTI is gaining 0.80% at $63.30 and a breakout of $66.38 (high Mar.26) would open the door to $66.72 (2018 high Jan.25) and then $77.95 (high Nov.21 2014). On the other hand, immediate contention emerges at $62.79 (low Apr.2) followed by $61.02 (100-day sma) and finally $60.03 (low Mar.8).