Posting a fresh 10-month high, West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices has managed to break above the $50.00 resistance and now exposes the region of $54.30-80.
Elsewhere, investors were focused on the likelihood of tighter supplies after Saudi Arabia unilaterally agreed to cut output.
Saudi Arabia, the world’s biggest oil exporter, said it would voluntarily cut one million barrels per day (bpd) of output in February and March, after OPEC+, which groups the Organization of the Petroleum Exporting Countries and other producers, including Russia, met earlier this week.
U.S. crude stocks dropped, and fuel inventories rose, the Energy Information Administration said on Wednesday.
Crude inventories were down by 8 million barrels in the week to Jan. 1 to 485.5 million barrels.
Assessing the daily technical standpoint, viewed from the two leading technical indicators, the Relative Strength Index (RSI) 3-day remains above the 50-midway point, while the Moving Average Convergence Divergence (MACD) has now confirmed a positive signal.
Due to the overnight’s advance, the potential target is directly viewed to $54.30-80. The support is located at $49.60, with $47.90-00 considered below.