West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices edges higher overnight and is currently consolidating near 11-month highs, as Saudi Arabia’s pledges to make voluntary cuts to its output continued to buoy the mood in the market though worries over slower fuel demand capped gains.
Earlier this week Saudi Arabia, the world’s biggest oil exporter, said it would cut output by an additional 1 million barrels per day (bpd) in February and March.
Still, to come, this Friday is the latest update of the Baker Hughes oil rig count.
Viewing the technical aspects, while the market bulls protect the $49.40 support, along with the recent break above the $50.00 resistance has exposed the region of $54.30-80. Reassess from there.