West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices ended flat on Monday.
WTI crude prices had hit their highest level since February last week, with an +8% gain, after a surprise announcement by Saudi Arabia of a unilateral cut of 1 million barrels of oil a day for two months from the start of February, which the Desert Kingdom followed up by raising its official selling prices later in the week.
Although the rally has slowed since the $50.00 break, it is assessed from a technical perspective; further demand could see price touch the region of $54.30-80 before any reversal.
However, a close under the $49.40 support is expected to negate the bullish call and instead, potentially reinstate a move to $44.90-00.
Meanwhile, according to data released by the energy company, Baker Hughes on Friday said the oil drilling rigs count in the U.S. rose for a seventh straight week, increased by 8 to 275 rigs for the week to January 8.